Stock Analysis on Net
Stock Analysis on Net

Northrop Grumman Corp. (NYSE:NOC)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Total Asset Turnover
since 2005

Microsoft Excel

Calculation

Northrop Grumman Corp., total asset turnover, long-term trends, calculation

Microsoft Excel
Total asset turnover = Sales1 ÷ Total assets1
Dec 31, 2022 0.84 = 36,602 ÷ 43,755
Dec 31, 2021 0.84 = 35,667 ÷ 42,579
Dec 31, 2020 0.83 = 36,799 ÷ 44,469
Dec 31, 2019 0.82 = 33,841 ÷ 41,089
Dec 31, 2018 0.80 = 30,095 ÷ 37,653
Dec 31, 2017 0.74 = 25,803 ÷ 34,917
Dec 31, 2016 0.96 = 24,508 ÷ 25,614
Dec 31, 2015 0.96 = 23,526 ÷ 24,454
Dec 31, 2014 0.90 = 23,979 ÷ 26,572
Dec 31, 2013 0.93 = 24,661 ÷ 26,381
Dec 31, 2012 0.95 = 25,218 ÷ 26,543
Dec 31, 2011 1.04 = 26,412 ÷ 25,411
Dec 31, 2010 1.11 = 34,757 ÷ 31,421
Dec 31, 2009 1.12 = 33,755 ÷ 30,252
Dec 31, 2008 1.12 = 33,887 ÷ 30,197
Dec 31, 2007 0.96 = 32,018 ÷ 33,373
Dec 31, 2006 0.94 = 30,148 ÷ 32,009
Dec 31, 2005 0.90 = 30,721 ÷ 34,214

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 total asset turnover ratio demonstrates a cyclical pattern of efficiency over the period from 2005 to 2022, reflecting shifts in the relationship between revenue generation and the company's asset base. The trajectory is characterized by an initial phase of increasing efficiency, a period of volatility and contraction, and a final phase of asset expansion leading to a lower, stabilized turnover rate.

Efficiency Gains (2005–2010)
A consistent upward trend in asset utilization is observed during this period. The total asset turnover ratio rose from 0.90 in 2005 to a peak of 1.12 in 2008 and 2009. This improvement was driven by steady sales growth, which increased from 30,721 million USD to 34,757 million USD by 2010, while total assets remained relatively stable, fluctuating between 30,197 million USD and 34,214 million USD.
Revenue Contraction and Stabilization (2011–2016)
A notable decline in efficiency occurred starting in 2011, coinciding with a sharp decrease in sales from 34,757 million USD in 2010 to 26,412 million USD in 2011. The total asset turnover ratio fell from 1.11 to 1.04 in 2011 and continued to decline to 0.90 by 2014. A slight recovery followed, with the ratio returning to 0.96 by 2015 and 2016 as sales began to stabilize and total assets were managed downward to 24,454 million USD in 2014.
Asset Expansion and Ratio Compression (2017–2022)
The most significant structural shift occurred in 2017, where total assets increased sharply from 25,614 million USD to 34,917 million USD. This expansion resulted in a precipitous drop in the total asset turnover ratio to 0.74, the lowest point in the analyzed period. While sales grew substantially from 2017 to 2022, reaching 36,602 million USD, the growth in the asset base—peaking at 44,469 million USD in 2020—outpaced revenue growth. Consequently, the ratio remained compressed, stabilizing between 0.80 and 0.84 from 2018 through 2022.

Overall, the data indicates that while the company has successfully grown its top-line revenue over the long term, the scale of its asset base has expanded more aggressively in recent years. This has led to a transition from a high-turnover model (exceeding 1.10) to a more asset-intensive model with a turnover ratio consistently below 0.85 since 2017.

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Comparison to Competitors

Northrop Grumman Corp., total asset turnover, long-term trends, comparison to competitors

Microsoft Excel
Northrop Grumman Corp. Boeing Co. Caterpillar Inc. Eaton Corp. plc GE Aerospace Honeywell International Inc. Lockheed Martin Corp. RTX Corp.
Dec 31, 2022 0.84 0.49 0.69 0.59 0.39 0.57 1.25 0.42
Dec 31, 2021 0.84 0.45 0.58 0.58 0.36 0.53 1.32 0.40
Dec 31, 2020 0.83 0.38 0.50 0.56 0.29 0.51 1.29 0.35
Dec 31, 2019 0.82 0.57 0.65 0.65 0.33 0.63 1.26 0.55
Dec 31, 2018 0.80 0.86 0.66 0.70 0.37 0.72 1.20 0.50
Dec 31, 2017 0.74 1.01 0.55 0.63 0.30 0.68 1.10 0.62
Dec 31, 2016 0.96 1.05 0.48 0.65 0.30 0.73 0.99 0.64
Dec 31, 2015 0.96 1.02 0.56 0.67 0.21 0.78 0.94 0.64
Dec 31, 2014 0.90 0.91 0.62 0.67 0.16 0.89 1.23 0.71
Dec 31, 2013 0.93 0.93 0.62 0.62 0.15 0.86 1.25 0.69
Dec 31, 2012 0.95 0.92 0.71 0.46 0.15 0.90 1.22 0.65
Dec 31, 2011 1.04 0.86 0.70 0.90 0.13 0.92 1.23 0.95
Dec 31, 2010 1.11 0.94 0.62 0.79 0.13 0.88 1.31 0.93
Dec 31, 2009 1.12 1.10 0.49 0.73 0.13 0.86 1.29 0.94
Dec 31, 2008 1.12 1.13 0.71 0.92 0.14 1.03 1.28 1.03
Dec 31, 2007 0.96 1.13 0.75 0.97 0.13 1.02 1.45 0.99
Dec 31, 2006 0.94 1.19 0.76 1.08 0.14 1.01 1.40 1.00
Dec 31, 2005 0.90 0.91 0.72 1.09 0.14 0.86 1.34 0.92

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., total asset turnover, long-term trends, comparison to sector (capital goods)

Microsoft Excel
Northrop Grumman Corp. Capital Goods
Dec 31, 2022 0.84 0.54
Dec 31, 2021 0.84 0.50
Dec 31, 2020 0.83 0.43
Dec 31, 2019 0.82 0.54
Dec 31, 2018 0.80 0.58
Dec 31, 2017 0.74 0.54
Dec 31, 2016 0.96 0.54
Dec 31, 2015 0.96 0.46
Dec 31, 2014 0.90 0.41
Dec 31, 2013 0.93 0.39
Dec 31, 2012 0.95 0.38
Dec 31, 2011 1.04 0.36
Dec 31, 2010 1.11 0.34
Dec 31, 2009 1.12 0.33
Dec 31, 2008 1.12 0.35
Dec 31, 2007 0.96 0.34
Dec 31, 2006 0.94 0.36
Dec 31, 2005 0.90 0.33

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., total asset turnover, long-term trends, comparison to industry (industrials)

Microsoft Excel
Northrop Grumman Corp. Industrials
Dec 31, 2022 0.84 0.66
Dec 31, 2021 0.84 0.58
Dec 31, 2020 0.83 0.50
Dec 31, 2019 0.82 0.62
Dec 31, 2018 0.80 0.67
Dec 31, 2017 0.74 0.62
Dec 31, 2016 0.96 0.61
Dec 31, 2015 0.96 0.54
Dec 31, 2014 0.90 0.49
Dec 31, 2013 0.93 0.47
Dec 31, 2012 0.95 0.46
Dec 31, 2011 1.04 0.45
Dec 31, 2010 1.11 0.41
Dec 31, 2009 1.12 0.39
Dec 31, 2008 1.12 0.43
Dec 31, 2007 0.96 0.41
Dec 31, 2006 0.94 0.43
Dec 31, 2005 0.90 0.40

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).