Northrop Grumman Corporation (NOC)

Number of days of payables

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Payables turnover		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	1.63	1.56	1.67	4.58
Number of days of payables	days	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	224.32	234.18	218.33	79.78

December 31, 2023 calculation

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

Northrop Grumman Corp.'s number of days of payables, a measure of how long it takes the company to pay its suppliers, has shown fluctuations over the past eight quarters. The trend indicates that the company has been managing its payable days effectively, with a noticeable improvement from 32.42 days at the end of December 2022 to 23.52 days at the end of December 2023. This suggests that the company has been able to negotiate more favorable payment terms with its suppliers or has improved its internal processes for managing payables. Overall, a decreasing trend in the number of days of payables can indicate better cash flow management and potentially stronger supplier relationships. However, it's important to consider the company's specific industry and financial strategy when interpreting this ratio.