Northrop Grumman Corporation (NOC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,109,000 | 2,577,000 | 3,530,000 | 4,907,000 | 2,245,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 11,942,000 | 11,587,000 | 9,530,000 | 9,580,000 | 9,434,000 |
| Cash ratio | 0.26 | 0.22 | 0.37 | 0.51 | 0.24 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,109,000K
+ $—K)
÷ $11,942,000K
= 0.26
The cash ratio of Northrop Grumman Corp. has fluctuated over the past five years, ranging from 0.34 to 0.66. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio signifies a stronger ability to meet short-term obligations without relying on external financing. The decrease in the cash ratio from 2020 to 2022 may indicate a decrease in the company's liquidity position. However, the ratio saw an increase in 2023, potentially signaling an improvement in the company's ability to cover short-term liabilities with cash. Overall, while the company's cash ratio has varied, it is essential to consider other liquidity and solvency measures to gain a comprehensive understanding of Northrop Grjsonman's financial health.
Peer comparison
Dec 31, 2023