Northrop Grumman Corporation (NOC)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	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	33,841,000	33,276,000	32,886,000	31,549,000
Receivables	US$ in thousands	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	6,660,000	7,888,000	7,489,000	7,951,000
Receivables turnover		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	5.08	4.22	4.39	3.97

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $39,290,000K ÷ $7,147,000K
= 5.50

The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. A higher receivables turnover ratio indicates that the company is more effective in collecting payments from its credit sales.

Northrop Grumman Corp.'s receivables turnover ratio has shown some fluctuations over the past eight quarters. The ratio was 5.50 at the end of December 2023, which indicates that the company collected its accounts receivable five and a half times during the year. This represents an improvement from the previous quarter where the ratio was 4.82.

The trend in the receivables turnover ratio suggests that Northrop Grumman Corp. has generally been efficient in collecting payments from its customers over the period, with some quarterly variations. The company should continue to monitor this ratio to ensure that it remains at satisfactory levels to maintain healthy cash flows.