Analysis of Long-term (Investment) Activity Ratios
Beginner level
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Northrop Grumman Corp., long-term (investment) activity ratios
Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Northrop Grumman Corp.’s net fixed asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Northrop Grumman Corp.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Northrop Grumman Corp.’s total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Northrop Grumman Corp.’s equity turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Net Fixed Asset Turnover
Northrop Grumman Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 33,841 | 30,095 | 25,803 | 24,508 | 23,526 | |
| Property, plant and equipment, net of accumulated depreciation | 6,912 | 6,372 | 4,225 | 3,588 | 3,064 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 4.90 | 4.72 | 6.11 | 6.83 | 7.68 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 6.12 | 8.00 | 7.37 | 7.38 | 7.96 | |
| General Dynamics Corp. | 8.79 | 8.32 | 8.81 | 9.04 | 9.08 | |
| Lockheed Martin Corp. | 9.07 | 8.78 | 8.84 | 8.51 | 8.40 | |
| Raytheon Technologies Corp. | 6.04 | 5.41 | 5.87 | 6.25 | 6.42 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Aerospace & Defense | 6.63 | 6.88 | 7.18 | 7.37 | 7.72 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 2.92 | 3.05 | 2.89 | 2.89 | 2.89 | |
Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).
1 2019 Calculation
Net fixed asset turnover = Sales ÷ Property, plant and equipment, net of accumulated depreciation
= 33,841 ÷ 6,912 = 4.90
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Northrop Grumman Corp.’s net fixed asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Northrop Grumman Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 33,841 | 30,095 | 25,803 | 24,508 | 23,526 | |
| Property, plant and equipment, net of accumulated depreciation | 6,912 | 6,372 | 4,225 | 3,588 | 3,064 | |
| Operating lease right-of-use assets | 1,511 | — | — | — | — | |
| Property, plant and equipment, net of accumulated depreciation (including operating lease, right-of-use asset) | 8,423 | 6,372 | 4,225 | 3,588 | 3,064 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.02 | 4.72 | 6.11 | 6.83 | 7.68 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | 5.59 | 8.00 | 7.37 | 7.38 | 7.96 | |
| General Dynamics Corp. | 6.66 | 8.32 | 8.81 | 9.04 | 9.08 | |
| Lockheed Martin Corp. | 7.88 | 8.78 | 8.84 | 8.51 | 8.40 | |
| Raytheon Technologies Corp. | 5.02 | 5.41 | 5.87 | 6.25 | 6.42 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Aerospace & Defense | 5.62 | 6.88 | 7.18 | 7.37 | 7.72 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.70 | 3.05 | 2.89 | 2.89 | 2.89 | |
Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).
1 2019 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales ÷ Property, plant and equipment, net of accumulated depreciation (including operating lease, right-of-use asset)
= 33,841 ÷ 8,423 = 4.02
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Northrop Grumman Corp.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Total Asset Turnover
Northrop Grumman Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 33,841 | 30,095 | 25,803 | 24,508 | 23,526 | |
| Total assets | 41,089 | 37,653 | 34,917 | 25,614 | 24,454 | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.82 | 0.80 | 0.74 | 0.96 | 0.96 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 0.57 | 0.86 | 1.01 | 1.05 | 1.02 | |
| General Dynamics Corp. | 0.81 | 0.80 | 0.88 | 0.95 | 0.98 | |
| Lockheed Martin Corp. | 1.26 | 1.20 | 1.10 | 0.99 | 0.94 | |
| Raytheon Technologies Corp. | 0.55 | 0.50 | 0.62 | 0.64 | 0.64 | |
| Total Asset Turnover, Sector | ||||||
| Aerospace & Defense | 0.70 | 0.76 | 0.85 | 0.89 | 0.88 | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.61 | 0.65 | 0.61 | 0.62 | 0.55 | |
Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).
1 2019 Calculation
Total asset turnover = Sales ÷ Total assets
= 33,841 ÷ 41,089 = 0.82
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Northrop Grumman Corp.’s total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Equity Turnover
Northrop Grumman Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 33,841 | 30,095 | 25,803 | 24,508 | 23,526 | |
| Shareholders’ equity | 8,819 | 8,187 | 7,048 | 5,259 | 5,522 | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 3.84 | 3.68 | 3.66 | 4.66 | 4.26 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | — | 298.31 | 263.08 | 115.75 | 15.17 | |
| General Dynamics Corp. | 2.90 | 3.08 | 2.71 | 2.86 | 2.93 | |
| Lockheed Martin Corp. | 19.13 | 38.57 | — | 31.27 | 14.90 | |
| Raytheon Technologies Corp. | 1.84 | 1.73 | 2.02 | 2.08 | 2.05 | |
| Equity Turnover, Sector | ||||||
| Aerospace & Defense | 4.88 | 4.79 | 5.47 | 5.52 | 4.78 | |
| Equity Turnover, Industry | ||||||
| Industrials | 3.63 | 3.80 | 3.08 | 2.95 | 2.55 | |
Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).
1 2019 Calculation
Equity turnover = Sales ÷ Shareholders’ equity
= 33,841 ÷ 8,819 = 3.84
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Northrop Grumman Corp.’s equity turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |