Northrop Grumman Corporation (NOC)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	41,033,000	40,985,000	40,764,000	40,122,000	39,290,000	38,685,000	37,881,000	37,106,000	36,602,000	35,208,000	34,957,000	35,307,000	35,667,000	37,240,000	37,603,000	37,336,000	36,799,000	35,308,000	34,700,000	34,272,000
Property, plant and equipment	US$ in thousands	10,536,000	10,078,000	9,771,000	9,690,000	9,653,000	9,173,000	8,976,000	8,838,000	8,800,000	8,325,000	8,125,000	8,017,000	7,894,000	7,277,000	7,164,000	7,093,000	7,071,000	7,187,000	7,063,000	6,956,000
Fixed asset turnover		3.89	4.07	4.17	4.14	4.07	4.22	4.22	4.20	4.16	4.23	4.30	4.40	4.52	5.12	5.25	5.26	5.20	4.91	4.91	4.93

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $41,033,000K ÷ $10,536,000K
= 3.89

The fixed asset turnover ratio for Northrop Grumman Corporation has been relatively stable over the period from March 31, 2020, to December 31, 2024. The ratio started at 4.93 in March 2020 and showed a slight increase to 5.26 by March 31, 2021. Subsequently, the ratio fluctuated within a narrow range between 4.16 (December 31, 2022) and 5.26 (March 31, 2021) until December 31, 2024, where it declined to 3.89.

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better efficiency in generating revenue from fixed assets. However, the decreasing trend in the ratio experienced by Northrop Grumman Corporation from March 31, 2021, to December 31, 2024, may signify a potential decrease in the company's ability to generate revenue from its fixed assets over this period.

Further analysis is required to understand the factors contributing to this decline and assess its implications for the company's operational performance and financial health.