Northrop Grumman Corporation (NOC)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	4,353,000	3,326,000	3,272,000	3,061,000	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
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.31	0.25	0.25	0.23	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

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 varied over the years based on the provided data. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, indicates how readily the firm can meet its financial obligations.

From March 31, 2020, to June 30, 2021, the cash ratio showed an increasing trend, indicating an improvement in Northrop Grumman's liquidity position. The ratio reached its peak at 0.51 on December 31, 2020, suggesting a strong ability to cover short-term obligations with available cash.

However, starting from March 31, 2021, the cash ratio began to fluctuate, with some periods showing a decrease in the ratio. By June 30, 2022, the ratio dropped significantly to 0.13, indicating a decline in liquidity. This could signal potential challenges in meeting short-term obligations with the available cash on hand.

Subsequently, the cash ratio showed some improvement in the following periods, hovering around 0.25 to 0.31 by December 31, 2024. While the ratio has recovered from its lowest point, it remains below the levels seen in the earlier periods of analysis.

Overall, the fluctuating cash ratio of Northrop Grumman Corporation suggests varying levels of liquidity and highlights the importance of closely monitoring the company's cash position to ensure it can effectively meet its short-term financial commitments.