Northrop Grumman Corporation (NOC)

Number of days of payables

		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
Payables turnover		1.56	1.63	1.76	1.60	1.94	1.90	2.06	1.96	1.59	2.12	2.32	2.37	2.17	2.29	2.48	2.53	2.59	1.72	1.84	1.76
Number of days of payables	days	234.29	223.78	207.06	228.68	188.12	192.02	176.78	186.65	229.47	172.49	157.63	154.21	167.97	159.66	147.34	144.40	140.85	212.31	198.00	207.10

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.56
= 234.29

The number of days of payables for Northrop Grumman Corporation has fluctuated over the years, indicating changes in the company's payment practices to its suppliers. The trend shows an increase in the number of days of payables from December 2020 to December 2024, with a slight decrease in the first quarter of 2023 before rising again. This suggests that the company may be taking longer to pay its suppliers during this period.

It is important to consider the number of days of payables in conjunction with other financial ratios and factors to get a comprehensive view of the company's financial health and management of working capital. A longer number of days of payables may indicate that the company is managing its cash flow effectively by delaying payments, but it could also potentially strain relationships with suppliers if taken to an extreme.

Further analysis and comparison with industry benchmarks and historical data could provide additional insights into Northrop Grumman's payment practices and financial performance.