Northrop Grumman Corporation (NOC)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	41,033,000	40,985,000	40,764,000	40,122,000	39,290,000	38,685,000	37,881,000	37,106,000	36,602,000	35,208,000	34,957,000	35,307,000	35,667,000	37,240,000	37,603,000	37,336,000	36,799,000	35,308,000	34,700,000	34,272,000
Receivables	US$ in thousands	7,180,000	1,609,000	1,694,000	1,832,000	7,147,000	1,764,000	2,096,000	2,061,000	7,494,000	1,936,000	2,387,000	1,713,000	6,959,000	1,590,000	1,910,000	1,710,000	6,641,000	1,958,000	1,989,000	2,136,000
Receivables turnover		5.71	25.47	24.06	21.90	5.50	21.93	18.07	18.00	4.88	18.19	14.64	20.61	5.13	23.42	19.69	21.83	5.54	18.03	17.45	16.04

December 31, 2024 calculation

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

The receivables turnover ratio for Northrop Grumman Corporation has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio has varied between a low of 4.88 on December 31, 2022, and a high of 25.47 on September 30, 2024.

A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more efficiently. The company experienced its highest turnover ratio of 25.47 on September 30, 2024, suggesting effective management of accounts receivable during that period.

However, the ratio significantly dropped to 4.88 on December 31, 2022, signaling potential challenges in collecting receivables efficiently during that quarter. It's important for the company to closely monitor and manage its receivables turnover to ensure smooth cash flow and timely collection of outstanding payments.

Overall, despite fluctuations, Northrop Grumman Corporation has demonstrated improvements in its receivables turnover ratio over the years, indicating effective management of accounts receivable and potential enhancement in its cash conversion cycle.