Northrop Grumman Corporation (NOC)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	41,033,000	39,290,000	36,602,000	35,667,000	36,799,000
Receivables	US$ in thousands	7,180,000	7,147,000	7,494,000	6,959,000	6,641,000
Receivables turnover		5.71	5.50	4.88	5.13	5.54

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $41,033,000K ÷ $7,180,000K
= 5.71

Based on the data provided, the receivables turnover ratio for Northrop Grumman Corporation has shown some fluctuations over the past five years.

- In December 2020, the receivables turnover ratio was 5.54, indicating that the company collected its accounts receivable approximately 5.54 times during that year.
- By December 2021, the ratio had decreased to 5.13, suggesting a slight decrease in the efficiency of collecting receivables.
- The ratio further declined to 4.88 by December 2022, indicating that the company took longer to collect its receivables compared to the previous year.
- However, there was a rebound in December 2023, with the ratio increasing to 5.50, showing improved efficiency in collecting accounts receivable.
- By December 2024, the receivables turnover ratio had increased further to 5.71, signifying that Northrop Grumman Corporation was collecting its receivables at a faster rate.

Overall, despite some fluctuations, the general trend indicates that the efficiency of Northrop Grumman Corporation in managing its receivables has been relatively stable, with some improvements observed in recent years. An increasing receivables turnover ratio generally suggests better liquidity and effective management of credit sales.