Northrop Grumman Corporation (NOC)

Current 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
Total current assets	US$ in thousands	13,706,000	13,150,000	13,869,000	12,810,000	12,488,000	12,298,000	11,637,000	11,556,000	12,426,000	12,928,000	12,762,000	12,253,000	15,344,000	14,552,000	13,179,000	13,128,000	10,685,000	10,836,000	10,159,000	10,443,000
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
Current ratio		1.15	1.28	1.20	1.22	1.08	1.14	1.30	1.31	1.30	1.47	1.49	1.46	1.60	1.44	1.35	1.29	1.13	1.29	1.25	1.18

December 31, 2023 calculation

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

The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A ratio of 1 or higher is generally considered favorable, indicating that the company has more than enough current assets to cover its current liabilities.

Looking at Northrop Grumman Corp.'s current ratio over the past eight quarters, we can observe fluctuations. The current ratio has ranged from 1.08 to 1.31 during this period. In the most recent quarter, the current ratio was 1.15, indicating that the company had $1.15 in current assets for every $1 of current liabilities.

The variations in the current ratio could be attributed to changes in the company's current assets and liabilities. A higher current ratio, such as the 1.31 ratio in the second quarter of 2022, suggests a stronger ability to cover short-term obligations. On the other hand, the lower ratios, such as the 1.08 in the fourth quarter of 2022, may indicate potential challenges in meeting short-term obligations.

It is essential to monitor the trends in the current ratio over time to assess the company's liquidity and its ability to manage short-term financial obligations effectively. Additionally, comparing the current ratio with industry benchmarks and analyzing the components of current assets and liabilities can provide further insights into Northrop Grumman Corp.'s financial health.