Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Northrop Grumman Corp., consolidated balance sheet: assets

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Cash and cash equivalents	2,577)	3,530)	4,907)	2,245)	1,579)
Accounts receivable, net	1,511)	1,467)	1,501)	1,326)	1,448)
Unbilled receivables, net	5,983)	5,492)	5,140)	5,334)	5,026)
Inventoried costs, net	978)	811)	759)	783)	654)
Prepaid expenses and other current assets	1,439)	1,126)	1,402)	997)	973)
Assets of disposal group held for sale	—)	—)	1,635)	—)	—)
Current assets	12,488)	12,426)	15,344)	10,685)	9,680)
Property, plant and equipment, net of accumulated depreciation	8,800)	7,894)	7,071)	6,912)	6,372)
Operating lease right-of-use assets	1,811)	1,655)	1,533)	1,511)	—)
Goodwill	17,516)	17,515)	17,518)	18,708)	18,672)
Intangible assets, net	384)	578)	783)	1,040)	1,372)
Deferred tax assets	162)	200)	311)	508)	94)
Other non-current assets	2,594)	2,311)	1,909)	1,725)	1,463)
Non-current assets	31,267)	30,153)	29,125)	30,404)	27,973)
Total assets	43,755)	42,579)	44,469)	41,089)	37,653)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The analysis of the annual financial data reveals several noteworthy trends in the asset composition over the examined five-year period.

Cash and cash equivalents: The cash position experienced significant fluctuation, rising sharply from 1,579 million USD in 2018 to a peak of 4,907 million USD in 2020, followed by a decline to 2,577 million USD by the end of 2022. This suggests changes in liquidity management or cash flow cycles during the period.
Accounts receivable, net: Net accounts receivable showed relatively stable figures, with minor variations around the 1,300 to 1,500 million USD range, indicating consistent credit sales and collection performance.
Unbilled receivables, net: Unbilled receivables steadily increased from 5,026 million USD in 2018 to 5,983 million USD in 2022, reflecting growing ongoing contractual work or delayed billing cycles.
Inventoried costs, net: Inventoried costs showed a steady upward trend from 654 million USD to 978 million USD, which may indicate accumulation of inventory or increased production activities.
Prepaid expenses and other current assets: These assets increased overall from 973 million USD in 2018 to 1,439 million USD in 2022, with some fluctuation in between, suggesting changes in advance payments or asset composition.
Assets of disposal group held for sale: This item appears only in 2020 at 1,635 million USD, indicating a specific divestment or reclassification that year without recurrence.
Current assets: Current assets peaked in 2020 at 15,344 million USD, driven by higher cash and receivables, before declining and stabilizing around 12,400 million USD in subsequent years.
Property, plant and equipment, net: There was a consistent increase in net PP&E from 6,372 million USD in 2018 to 8,800 million USD in 2022, indicating ongoing investment in fixed assets.
Operating lease right-of-use assets: This asset category was introduced in 2019, showing gradual increases from 1,511 million USD to 1,811 million USD in 2022, reflecting lease capitalization under updated accounting standards.
Goodwill: Goodwill remained relatively stable around 17,500 to 18,700 million USD, with a slight decrease noted after 2019, suggesting minimal acquisition or impairment activity.
Intangible assets, net: Intangible assets showed a marked declining trend from 1,372 million USD in 2018 down to 384 million USD in 2022, indicating amortization, impairment, or disposal of intangible resources.
Deferred tax assets: Deferred tax assets experienced variability, peaking at 508 million USD in 2019 and declining thereafter to 162 million USD in 2022, demonstrating changes in tax positions and timing differences.
Other non-current assets: These assets steadily increased from 1,463 million USD to 2,594 million USD over the period, pointing to growth in long-term miscellaneous assets.
Non-current assets: Non-current assets fluctuated but maintained an upward tendency, increasing from 27,973 million USD in 2018 to 31,267 million USD in 2022, driven by growth in PPE and other non-current items, despite declines in intangible assets.
Total assets: Total assets rose from 37,653 million USD in 2018 to a high of 44,469 million USD in 2020, before slightly contracting and stabilizing around 43,700 million USD by 2022, reflecting overall organizational growth tempered by asset reclassifications and disposals.

Assets: Selected Items

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Northrop Grumman Corp. (NYSE:NOC)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items