Northrop Grumman Corporation (NOC)
Total asset 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 |
| Total assets | US$ in thousands | 49,359,000 | 46,544,000 | 43,755,000 | 42,579,000 | 44,469,000 |
| Total asset turnover | 0.83 | 0.84 | 0.84 | 0.84 | 0.83 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $41,033,000K ÷ $49,359,000K
= 0.83
The total asset turnover ratio for Northrop Grumman Corporation has remained relatively stable over the past five years, ranging from 0.83 to 0.84. This ratio indicates that, on average, the company generates approximately $0.83 to $0.84 in sales for every dollar of total assets held during each year. A higher total asset turnover ratio is generally preferable as it suggests that the company is effectively utilizing its assets to generate revenue. However, the consistency in Northrop Grumman's total asset turnover ratio indicates that the company has been maintaining a steady level of efficiency in converting its assets into sales over the years. Further analysis of the company's operational efficiency and asset management practices could provide additional insights into its performance.
Peer comparison
Dec 31, 2024