Northrop Grumman Corporation (NOC)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 7,147,000 | 1,764,000 | 2,096,000 | 2,061,000 | 7,494,000 | 1,936,000 | 2,387,000 | 1,713,000 | 6,959,000 | 1,590,000 | 1,910,000 | 1,710,000 | 6,641,000 | 1,958,000 | 1,989,000 | 2,136,000 | 6,660,000 | 7,888,000 | 7,489,000 | 7,951,000 |
| 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 |
| Quick ratio | 0.86 | 0.37 | 0.47 | 0.43 | 0.87 | 0.33 | 0.40 | 0.44 | 1.10 | 0.64 | 0.68 | 0.62 | 1.21 | 0.69 | 0.63 | 0.53 | 0.94 | 1.07 | 1.05 | 1.00 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,109,000K
+ $—K
+ $7,147,000K)
÷ $11,942,000K
= 0.86
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating that the company has enough liquid assets to cover its short-term liabilities.
Looking at Northrop Grumman Corp.'s quick ratio over the past eight quarters, we can see that it has remained consistently above 1, which is a positive sign. This suggests that the company has maintained a sufficient level of liquid assets, such as cash and accounts receivable, to cover its short-term debts.
The trend shows some fluctuation, with the ratio reaching its peak at 1.21 in the first quarter of 2022 and hitting its lowest point at 0.99 in the fourth quarter of 2022. However, the overall trend indicates that Northrop Grumman Corp. has effectively managed its short-term liquidity position.
This consistency in maintaining a quick ratio above 1 demonstrates the company's ability to handle its short-term financial obligations without relying heavily on borrowing or selling off long-term assets, which bodes well for its financial stability and solvency.
Peer comparison
Dec 31, 2023