Northrop Grumman Corporation (NOC)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	13,706,000	12,488,000	12,426,000	15,344,000	10,685,000
Total current liabilities	US$ in thousands	11,942,000	11,587,000	9,530,000	9,580,000	9,434,000
Current ratio		1.15	1.08	1.30	1.60	1.13

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $13,706,000K ÷ $11,942,000K
= 1.15

The current ratio of Northrop Grumman Corp. has fluctuated over the past five years. In 2023, the current ratio stood at 1.15, indicating that the company's current assets were 1.15 times its current liabilities. This represents a slight improvement compared to 2022 when the ratio was 1.08. The decrease in the current ratio from 2022 to 2023 may raise concerns about the company's ability to cover its short-term obligations.

Furthermore, in 2021, the current ratio was higher at 1.30, as opposed to 2020 when it was 1.60, indicating a declining trend. The significant drop in 2020 could be attributed to various factors, including changes in the company's asset and liability composition or liquidity management. The slight increase in 2023 compared to 2022 may indicate an improvement in the company's liquidity position.

Overall, while the current ratio fluctuated over the years, it is important to carefully analyze the components of current assets and liabilities to understand the underlying reasons for these fluctuations and assess the company's short-term liquidity position accurately.