Northrop Grumman Corporation (NOC)

Working capital 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
Total current assets	US$ in thousands	14,274,000	14,332,000	14,267,000	14,796,000	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
Total current liabilities	US$ in thousands	14,128,000	13,101,000	12,908,000	13,132,000	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
Working capital turnover		281.05	33.29	30.00	24.11	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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $41,033,000K ÷ ($14,274,000K – $14,128,000K)
= 281.05

The working capital turnover ratio for Northrop Grumman Corporation has experienced significant fluctuations over the reported periods.

From March 31, 2020, to December 31, 2020, the ratio decreased consistently from 11.61 to 6.38, indicating a decline in the efficiency of utilizing working capital to generate sales. However, starting from March 31, 2021, there was a rebound in the ratio, reaching its peak at 40.62 by December 31, 2022, which suggests a substantial improvement in working capital management.

Subsequently, the ratio declined from the peak, dropping to 13.60 by September 30, 2023. This downward trend continued until December 31, 2024, where a significant drop to 281.05 was observed. Such a high ratio implies a much higher level of sales relative to working capital, which could signify either a very efficient use of working capital or an anomaly in the data reported.

In summary, Northrop Grumman Corporation's working capital turnover ratio has shown variability, indicating changing efficiency in converting working capital into sales over the reported periods. Further analysis would be required to understand the specific factors driving these fluctuations and their implications for the company's financial performance.