Current Ratio
since 2005
Calculation
Northrop Grumman Corp., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.08 | = | 12,488) | ÷ | 11,587) |
| Dec 31, 2021 | 1.30 | = | 12,426) | ÷ | 9,530) |
| Dec 31, 2020 | 1.60 | = | 15,344) | ÷ | 9,580) |
| Dec 31, 2019 | 1.13 | = | 10,685) | ÷ | 9,434) |
| Dec 31, 2018 | 1.17 | = | 9,680) | ÷ | 8,274) |
| Dec 31, 2017 | 2.35 | = | 16,349) | ÷ | 6,965) |
| Dec 31, 2016 | 1.22 | = | 6,856) | ÷ | 5,630) |
| Dec 31, 2015 | 1.16 | = | 6,334) | ÷ | 5,457) |
| Dec 31, 2014 | 1.39 | = | 8,184) | ÷ | 5,892) |
| Dec 31, 2013 | 1.63 | = | 9,488) | ÷ | 5,815) |
| Dec 31, 2012 | 1.39 | = | 8,392) | ÷ | 6,056) |
| Dec 31, 2011 | 1.26 | = | 7,746) | ÷ | 6,135) |
| Dec 31, 2010 | 1.18 | = | 9,904) | ÷ | 8,386) |
| Dec 31, 2009 | 1.24 | = | 8,635) | ÷ | 6,985) |
| Dec 31, 2008 | 0.97 | = | 7,189) | ÷ | 7,424) |
| Dec 31, 2007 | 1.05 | = | 6,772) | ÷ | 6,432) |
| Dec 31, 2006 | 0.99 | = | 6,719) | ÷ | 6,753) |
| Dec 31, 2005 | 0.95 | = | 7,549) | ÷ | 7,974) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The liquidity profile from 2005 to 2022 is characterized by an initial period of tight working capital management, followed by a decade of increased liquidity, and a recent trend toward compression. While the liquidity position hovered around a 1.0 ratio in the mid-2000s, it generally remained above this threshold for the remainder of the period, indicating a consistent ability to cover short-term obligations.
- Current Asset Trends
- Current assets exhibited moderate volatility between 2005 and 2016, fluctuating between $6.3 billion and $9.9 billion. A substantial increase was observed in 2017, with assets peaking at $16.3 billion. Following this spike, assets remained elevated compared to pre-2017 levels, recording another peak of $15.3 billion in 2020 before settling at $12.5 billion by the end of 2022.
- Current Liability Progression
- Short-term obligations remained relatively stable for over a decade, typically oscillating between $5.4 billion and $8.4 billion. A distinct upward trend emerged starting in 2018, as current liabilities rose steadily from $8.3 billion to $11.6 billion by 2022. This represents a significant increase in the company's short-term debt or accrued expenses during the latter part of the observed period.
- Current Ratio Analysis
- The current ratio remained near parity (0.95 to 1.05) between 2005 and 2008, before improving to a range of 1.16 to 1.63 between 2009 and 2016. A significant outlier occurred in 2017, where the ratio surged to 2.35, driven by the sharp increase in current assets. However, from 2020 to 2022, a contraction is evident, with the ratio declining from 1.60 to 1.08. This downward trajectory suggests that the growth in current liabilities has outpaced the growth in current assets in recent years.
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Comparison to Competitors
Northrop Grumman Corp., current ratio, long-term trends, comparison to competitors
| Northrop Grumman Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 1.08 | 1.22 | 1.39 | 1.38 | 1.16 | 1.25 | 1.32 | 1.09 |
| Dec 31, 2021 | 1.30 | 1.33 | 1.46 | 1.04 | 1.28 | 1.30 | 1.42 | 1.19 |
| Dec 31, 2020 | 1.60 | 1.39 | 1.53 | 1.56 | 1.58 | 1.47 | 1.39 | 1.21 |
| Dec 31, 2019 | 1.13 | 1.05 | 1.47 | 1.70 | 1.16 | 1.34 | 1.22 | 1.08 |
| Dec 31, 2018 | 1.17 | 1.08 | 1.37 | 1.47 | — | 1.29 | 1.12 | 1.13 |
| Dec 31, 2017 | 2.35 | 1.16 | 1.35 | 1.64 | — | 1.38 | 1.38 | 1.35 |
| Dec 31, 2016 | 1.22 | 1.25 | 1.22 | 1.27 | — | 1.41 | 1.20 | 1.30 |
| Dec 31, 2015 | 1.16 | 1.35 | 1.31 | 1.43 | — | 1.09 | 1.15 | 1.18 |
| Dec 31, 2014 | 1.39 | 1.20 | 1.39 | 1.51 | — | 1.50 | 1.11 | 1.30 |
| Dec 31, 2013 | 1.63 | 1.26 | 1.40 | 1.78 | — | 1.49 | 1.20 | 1.29 |
| Dec 31, 2012 | 1.39 | 1.27 | 1.43 | 1.44 | — | 1.35 | 1.14 | 1.24 |
| Dec 31, 2011 | 1.26 | 1.21 | 1.33 | 1.60 | — | 1.31 | 1.16 | 1.38 |
| Dec 31, 2010 | 1.18 | 1.15 | 1.44 | 1.70 | — | 1.28 | 1.15 | 1.33 |
| Dec 31, 2009 | 1.24 | 1.07 | 1.39 | 1.68 | — | 1.25 | 1.17 | 1.29 |
| Dec 31, 2008 | 0.97 | 0.84 | 1.21 | 1.28 | — | 1.08 | 1.01 | 1.24 |
| Dec 31, 2007 | 1.05 | 0.86 | 1.15 | 1.30 | — | 1.15 | 1.11 | 1.26 |
| Dec 31, 2006 | 0.99 | 0.77 | 1.20 | 1.29 | — | 1.21 | 1.06 | 1.24 |
| Dec 31, 2005 | 0.95 | 0.78 | 1.19 | 1.21 | — | 1.15 | 1.12 | 1.12 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Northrop Grumman Corp., current ratio, long-term trends, comparison to sector (capital goods)
| Northrop Grumman Corp. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 1.08 | 1.22 |
| Dec 31, 2021 | 1.30 | 1.31 |
| Dec 31, 2020 | 1.60 | 1.43 |
| Dec 31, 2019 | 1.13 | 1.17 |
| Dec 31, 2018 | 1.17 | 1.17 |
| Dec 31, 2017 | 2.35 | 1.29 |
| Dec 31, 2016 | 1.22 | 1.27 |
| Dec 31, 2015 | 1.16 | 1.26 |
| Dec 31, 2014 | 1.39 | 1.29 |
| Dec 31, 2013 | 1.63 | 1.34 |
| Dec 31, 2012 | 1.39 | 1.31 |
| Dec 31, 2011 | 1.26 | 1.29 |
| Dec 31, 2010 | 1.18 | 1.28 |
| Dec 31, 2009 | 1.24 | 1.23 |
| Dec 31, 2008 | 0.97 | 1.07 |
| Dec 31, 2007 | 1.05 | 1.08 |
| Dec 31, 2006 | 0.99 | 1.05 |
| Dec 31, 2005 | 0.95 | 1.03 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Northrop Grumman Corp., current ratio, long-term trends, comparison to industry (industrials)
| Northrop Grumman Corp. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 1.08 | 1.20 |
| Dec 31, 2021 | 1.30 | 1.29 |
| Dec 31, 2020 | 1.60 | 1.41 |
| Dec 31, 2019 | 1.13 | 1.16 |
| Dec 31, 2018 | 1.17 | 1.13 |
| Dec 31, 2017 | 2.35 | 1.24 |
| Dec 31, 2016 | 1.22 | 1.22 |
| Dec 31, 2015 | 1.16 | 1.24 |
| Dec 31, 2014 | 1.39 | 1.26 |
| Dec 31, 2013 | 1.63 | 1.33 |
| Dec 31, 2012 | 1.39 | 1.30 |
| Dec 31, 2011 | 1.26 | 1.30 |
| Dec 31, 2010 | 1.18 | 1.28 |
| Dec 31, 2009 | 1.24 | 1.23 |
| Dec 31, 2008 | 0.97 | 1.06 |
| Dec 31, 2007 | 1.05 | 1.07 |
| Dec 31, 2006 | 0.99 | 1.05 |
| Dec 31, 2005 | 0.95 | 1.05 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).