Northrop Grumman Corporation (NOC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,094,000 | 4,115,000 | 4,774,000 | 4,680,000 | 3,622,000 |
| Payables | US$ in thousands | 2,110,000 | 2,587,000 | 2,197,000 | 1,806,000 | 2,226,000 |
| Payables turnover | 1.94 | 1.59 | 2.17 | 2.59 | 1.63 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,094,000K ÷ $2,110,000K
= 1.94
Based on the payables turnover data provided, Northrop Grumman Corp. has exhibited fluctuations in its payables turnover ratio over the past five years. The payables turnover ratio measures how efficiently a company is managing its accounts payable and indicates the number of times a company pays off its average accounts payable balance during a period.
The payables turnover ratio for Northrop Grumman Corp. has been as follows:
- Dec 31, 2023: 15.52
- Dec 31, 2022: 11.26
- Dec 31, 2021: 12.93
- Dec 31, 2020: 16.24
- Dec 31, 2019: 11.94
The overall trend indicates fluctuations in the payables turnover ratio. A higher payables turnover ratio suggests that the company is managing its accounts payable efficiently and paying off its suppliers more frequently. Conversely, a lower payables turnover ratio may indicate that the company is taking a longer time to pay its suppliers.
It is worth noting that the payables turnover ratio should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial management. Further analysis of Northrop Grumman Corp.'s payables turnover ratio relative to industry benchmarks and trends over time would provide additional insights into its liquidity management and relationships with suppliers.
Peer comparison
Dec 31, 2023