Northrop Grumman Corporation (NOC)

Working capital 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
Total current assets	US$ in thousands	13,706,000	13,150,000	13,869,000	12,810,000	12,488,000	12,298,000	11,637,000	11,556,000	12,426,000	12,928,000	12,762,000	12,253,000	15,344,000	14,552,000	13,179,000	13,128,000	10,685,000	10,836,000	10,159,000	10,443,000
Total current liabilities	US$ in thousands	11,942,000	10,305,000	11,557,000	10,483,000	11,587,000	10,812,000	8,976,000	8,850,000	9,530,000	8,819,000	8,591,000	8,367,000	9,580,000	10,109,000	9,727,000	10,177,000	9,434,000	8,416,000	8,155,000	8,821,000
Working capital turnover		22.27	13.60	16.38	15.95	40.62	23.69	13.14	13.05	12.32	9.06	9.02	9.61	6.38	7.95	10.05	11.61	27.05	13.75	16.41	19.45

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $39,290,000K ÷ ($13,706,000K – $11,942,000K)
= 22.27

The working capital turnover ratio for Northrop Grumman Corp. has exhibited fluctuations over the past eight quarters, indicating changes in the efficiency of the company's management of its working capital.

The ratio was highest in the fourth quarter of 2022 at 40.62, signaling that the company was able to generate $40.62 in net sales for every dollar of working capital during that period. This suggests strong efficiency in utilizing its working capital to generate revenue.

The ratio decreased significantly in the third quarter of 2023 to 13.60 before increasing in the following two quarters. This downward trend may indicate a potential inefficiency in the management of working capital during that period, resulting in a lower turnover of working capital into sales.

In general, while the ratio can fluctuate from period to period, Northrop Grumman Corp. should monitor its working capital turnover to ensure efficient utilization of its working capital to drive sales and maintain financial stability.