Northrop Grumman Corporation (NOC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,353,000 | 3,109,000 | 2,577,000 | 3,530,000 | 4,907,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 7,180,000 | 7,147,000 | 7,494,000 | 6,959,000 | 6,641,000 |
| Total current liabilities | US$ in thousands | 14,128,000 | 11,942,000 | 11,587,000 | 9,530,000 | 9,580,000 |
| Quick ratio | 0.82 | 0.86 | 0.87 | 1.10 | 1.21 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,353,000K
+ $—K
+ $7,180,000K)
÷ $14,128,000K
= 0.82
The quick ratio is a financial metric that assesses a company's ability to meet its short-term obligations with its most liquid assets. For Northrop Grumman Corporation, the quick ratio has been gradually declining over the years.
As of December 31, 2020, the quick ratio was 1.21, indicating that the company had $1.21 of liquid assets available for every dollar of short-term liabilities. However, by December 31, 2024, the quick ratio had decreased to 0.82. This signifies that the company's ability to cover its short-term obligations with its quick assets has weakened over the years.
A quick ratio below 1 suggests that a company may have difficulty meeting its short-term financial commitments. Therefore, Northrop Grumman Corporation may need to closely monitor its liquidity position and consider strategies to improve its ability to meet short-term obligations.
Peer comparison
Dec 31, 2024