Liquidity ratios measure the company ability to meet its short-term obligations.
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- Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
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Liquidity Ratios (Summary)
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Current ratio | ||||||
Quick ratio | ||||||
Cash ratio |
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).
- Current Ratio
-
The current ratio displayed moderate fluctuations over the five-year period. Beginning at 1.17 in 2018, it dipped slightly to 1.13 in 2019 before experiencing a notable increase to 1.6 in 2020. Following this peak, the ratio declined to 1.3 in 2021 and further dropped to 1.08 in 2022. Overall, the current ratio indicates a general decline in liquidity after 2020, approaching the threshold of 1.0 by the end of 2022.
- Quick Ratio
-
The quick ratio followed a trend similar to that of the current ratio, showing an increase from 0.97 in 2018 to 1.21 in 2020. The ratio stayed relatively strong in 2021 at 1.1, but decreased substantially in 2022 to 0.87. This pattern reflects a temporary enhancement in the company's ability to meet short-term obligations without relying on inventory, with a subsequent decline below the ideal threshold of 1.0 in the final year.
- Cash Ratio
-
The cash ratio experienced notable growth from 0.19 in 2018 to 0.51 in 2020, indicating an improvement in the most liquid form of current assets relative to current liabilities. However, this ratio dropped to 0.37 in 2021 and further declined to 0.22 in 2022. Despite the gains in 2020, the latter years show a decrease in cash availability, suggesting a reduced cushion of liquid assets for immediate debt coverage.
Current Ratio
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Current assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Current ratio1 | ||||||
Benchmarks | ||||||
Current Ratio, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
Current Ratio, Sector | ||||||
Capital Goods | ||||||
Current Ratio, Industry | ||||||
Industrials |
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).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets displayed a notable increase from 2018 to 2020, rising from 9,680 million US dollars to 15,344 million US dollars. This was followed by a decline in 2021 to 12,426 million and a stabilization in 2022 at 12,488 million US dollars. This pattern suggests an expansion phase peaking in 2020 with a subsequent consolidation or reduction in asset holdings.
- Current Liabilities
- Current liabilities showed a general upward trend throughout the period, increasing from 8,274 million US dollars in 2018 to 11,587 million US dollars in 2022. The increase was relatively steady, with a slight plateau observed around 2020 and 2021, then a more pronounced increase in 2022. This indicates growing short-term obligations over the years.
- Current Ratio
- The current ratio, an indicator of short-term liquidity, remained above 1.0 across all years, signaling that assets exceeded liabilities each year. However, it declined from 1.17 in 2018 to 1.08 in 2022, with a peak at 1.6 in 2020. This sharp peak in 2020 corresponds with the surge in current assets. The subsequent decrease by 2022 suggests reduced liquidity, potentially due to the increase in current liabilities outpacing current assets.
Quick Ratio
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cash and cash equivalents | ||||||
Accounts receivable, net | ||||||
Unbilled receivables, net | ||||||
Total quick assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Quick ratio1 | ||||||
Benchmarks | ||||||
Quick Ratio, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
Quick Ratio, Sector | ||||||
Capital Goods | ||||||
Quick Ratio, Industry | ||||||
Industrials |
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).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrate an overall upward trend from 2018 to 2020, increasing from 8,053 million US dollars to a peak of 11,548 million US dollars in 2020. However, this growth was not sustained, as total quick assets declined in the following years, dropping to 10,489 million in 2021 and further down to 10,071 million in 2022.
- Current Liabilities
- Current liabilities show a consistent increase throughout the entire period. Starting at 8,274 million US dollars in 2018, they rose steadily each year, reaching 9,434 million in 2019 and 9,580 million in 2020. Though the increase slowed slightly in 2021 to 9,530 million, a notable rise occurred in 2022, with current liabilities reaching 11,587 million, the highest level over the five-year span.
- Quick Ratio
- The quick ratio, which measures liquidity and the company's ability to meet short-term obligations without selling inventory, initially declined slightly from 0.97 in 2018 to 0.94 in 2019. It then improved notably in 2020 to 1.21, reflecting enhanced liquidity that year. However, this improvement was not maintained, as the ratio decreased to 1.1 in 2021 and dropped below 1.0 to 0.87 in 2022, indicating a reduction in immediate liquidity relative to current liabilities by the end of the period.
Cash Ratio
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cash and cash equivalents | ||||||
Total cash assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Cash ratio1 | ||||||
Benchmarks | ||||||
Cash Ratio, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
Cash Ratio, Sector | ||||||
Capital Goods | ||||||
Cash Ratio, Industry | ||||||
Industrials |
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).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets exhibit significant fluctuations across the years analyzed. Initially, there was a strong growth from 1,579 million US dollars in 2018 to 4,907 million US dollars by the end of 2020. This was followed by a decline to 3,530 million in 2021 and a more pronounced decrease to 2,577 million in 2022, indicating a reduction in liquid cash reserves after the peak in 2020.
- Current liabilities
- The current liabilities show a consistent upward trend over the five-year period. Starting at 8,274 million US dollars in 2018, liabilities increased yearly, reaching 11,587 million by the end of 2022. The growth pace is relatively steady, signaling rising short-term obligations or operational liabilities over this timeframe.
- Cash ratio
- The cash ratio, which reflects the company's liquidity position by comparing cash assets to current liabilities, indicates variability in liquidity management. It improved considerably from 0.19 in 2018 to 0.51 in 2020, suggesting stronger liquidity coinciding with the peak in cash assets. Subsequently, the ratio declined to 0.37 in 2021 and further to 0.22 in 2022, reflecting a tightening liquidity position as liabilities continued to grow while cash assets decreased.