Northrop Grumman Corporation (NOC)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,109,000 | 2,082,000 | 3,384,000 | 2,495,000 | 2,577,000 | 1,666,000 | 1,169,000 | 2,174,000 | 3,530,000 | 4,055,000 | 3,941,000 | 3,517,000 | 4,907,000 | 4,995,000 | 4,178,000 | 3,278,000 | 2,245,000 | 1,127,000 | 1,088,000 | 848,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.26 | 0.20 | 0.29 | 0.24 | 0.22 | 0.15 | 0.13 | 0.25 | 0.37 | 0.46 | 0.46 | 0.42 | 0.51 | 0.49 | 0.43 | 0.32 | 0.24 | 0.13 | 0.13 | 0.10 |
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 exhibited some fluctuations over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
The cash ratio has shown an increasing trend since the third quarter of 2022, reaching its peak at 0.46 in December 2023. This indicates that the company's cash and cash equivalents have been increasing at a faster rate compared to its short-term liabilities over this period.
It is important to note that while a high cash ratio is generally favorable, an excessively high cash ratio may indicate that the company is not efficiently utilizing its cash resources. Conversely, a low cash ratio may suggest a potential inability to meet short-term obligations.
Overall, Northrop Grumman Corp.'s cash ratio has displayed improvement over the covered period, reflecting a stronger liquidity position and ability to cover short-term liabilities with its cash and cash equivalents. However, further analysis of the company's cash management and working capital practices would be necessary to fully assess its liquidity position.
Peer comparison
Dec 31, 2023