Northrop Grumman Corporation (NOC)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		1.94	1.59	2.17	2.59	1.63
Number of days of payables	days	188.12	229.47	167.97	140.85	224.32

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.94
= 188.12

The number of days of payables of Northrop Grumman Corp. has fluctuated over the past five years, indicating changes in the company's payment practices with its suppliers.

In 2023, the number of days of payables decreased to 23.52 days from 32.42 days in 2022. This suggests that the company took fewer days, overall, to pay its suppliers in 2023 compared to the previous year.

Looking further back, in 2021, the number of days of payables was 28.24 days, showing a slight decrease from 30.57 days in 2019. However, in 2020, there was a significant decrease to 22.48 days.

Overall, the reduction in the number of days of payables in 2023 compared to 2022 may indicate an improvement in Northrop Grumman Corp.'s ability to manage its payables and maintain favorable payment terms with its suppliers. However, it is important to consider the reasons behind these changes, as well as the company's industry and market conditions, to fully understand the implications of this trend.

It is important to note that the number of days of payables should be analyzed in conjunction with other financial ratios and factors to gain a comprehensive understanding of Northrop Grumman Corp.'s financial performance and management of its payables.