Northrop Grumman Corporation (NOC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,353,000 | 3,109,000 | 2,577,000 | 3,530,000 | 4,907,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 14,128,000 | 11,942,000 | 11,587,000 | 9,530,000 | 9,580,000 |
| Cash ratio | 0.31 | 0.26 | 0.22 | 0.37 | 0.51 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,353,000K
+ $—K)
÷ $14,128,000K
= 0.31
The cash ratio of Northrop Grumman Corporation has decreased over the years based on the provided data. In December 31, 2020, the cash ratio was 0.51, indicating that the company had $0.51 in cash and cash equivalents for every $1 of current liabilities. By December 31, 2021, the cash ratio decreased to 0.37, showing a reduction in the company's liquidity position. This trend continued in the following years, with the cash ratio dropping further to 0.22 in December 31, 2022, then increasing slightly to 0.26 by December 31, 2023, and further improving to 0.31 by December 31, 2024.
Overall, the declining trend in the cash ratio from 2020 to 2022 may indicate potential liquidity challenges for Northrop Grumman Corporation during those years. However, the slight improvement seen in 2023 and 2024 suggests a positive shift in the company's liquidity position, potentially reflecting better management of cash resources or improved financial health. It is important for investors and stakeholders to monitor the company's cash management practices and overall financial performance to assess its ability to meet short-term obligations effectively.
Peer comparison
Dec 31, 2024