Analysis of Long-term (Investment) Activity Ratios
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: 2021-01-28), 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).
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 improved from 2018 to 2019 and from 2019 to 2020. |
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 2018 to 2019 but then slightly improved from 2019 to 2020. |
Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Northrop Grumman Corp.’s total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020. |
Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Northrop Grumman Corp.’s equity turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Net Fixed Asset Turnover
Northrop Grumman Corp., net fixed asset turnover calculation, comparison to benchmarks
Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Sales | 36,799 | 33,841 | 30,095 | 25,803 | 24,508 | |
Property, plant and equipment, net of accumulated depreciation | 7,071 | 6,912 | 6,372 | 4,225 | 3,588 | |
Long-term Activity Ratio | ||||||
Net fixed asset turnover1 | 5.20 | 4.90 | 4.72 | 6.11 | 6.83 | |
Benchmarks | ||||||
Net Fixed Asset Turnover, Competitors2 | ||||||
Boeing Co. | 4.92 | 6.12 | 8.00 | 7.37 | 7.38 | |
Lockheed Martin Corp. | 9.07 | 9.07 | 8.78 | 8.84 | 8.51 | |
Raytheon Technologies Corp. | 3.78 | 6.04 | 5.41 | 5.87 | 6.25 | |
Net Fixed Asset Turnover, Sector | ||||||
Aerospace & Defense | 5.28 | 6.38 | 6.72 | 7.00 | 7.19 | |
Net Fixed Asset Turnover, Industry | ||||||
Industrials | 2.21 | 2.44 | 2.56 | 2.45 | 2.41 |
Based on: 10-K (filing date: 2021-01-28), 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).
1 2020 Calculation
Net fixed asset turnover = Sales ÷ Property, plant and equipment, net of accumulated depreciation
= 36,799 ÷ 7,071 = 5.20
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 improved from 2018 to 2019 and from 2019 to 2020. |
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, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Sales | 36,799 | 33,841 | 30,095 | 25,803 | 24,508 | |
Property, plant and equipment, net of accumulated depreciation | 7,071 | 6,912 | 6,372 | 4,225 | 3,588 | |
Operating lease right-of-use assets | 1,533 | 1,511 | — | — | — | |
Property, plant and equipment, net of accumulated depreciation (including operating lease, right-of-use asset) | 8,604 | 8,423 | 6,372 | 4,225 | 3,588 | |
Long-term Activity Ratio | ||||||
Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.28 | 4.02 | 4.72 | 6.11 | 6.83 | |
Benchmarks | ||||||
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
Boeing Co. | 4.45 | 5.59 | 8.00 | 7.37 | 7.38 | |
Lockheed Martin Corp. | 7.96 | 7.88 | 8.78 | 8.84 | 8.51 | |
Raytheon Technologies Corp. | 3.36 | 5.02 | 5.41 | 5.87 | 6.25 | |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
Aerospace & Defense | 4.64 | 5.49 | 6.72 | 7.00 | 7.19 | |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
Industrials | 1.98 | 2.29 | 2.56 | 2.45 | 2.41 |
Based on: 10-K (filing date: 2021-01-28), 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).
1 2020 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)
= 36,799 ÷ 8,604 = 4.28
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 2018 to 2019 but then slightly improved from 2019 to 2020. |
Total Asset Turnover
Northrop Grumman Corp., total asset turnover calculation, comparison to benchmarks
Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Sales | 36,799 | 33,841 | 30,095 | 25,803 | 24,508 | |
Total assets | 44,469 | 41,089 | 37,653 | 34,917 | 25,614 | |
Long-term Activity Ratio | ||||||
Total asset turnover1 | 0.83 | 0.82 | 0.80 | 0.74 | 0.96 | |
Benchmarks | ||||||
Total Asset Turnover, Competitors2 | ||||||
Boeing Co. | 0.38 | 0.57 | 0.86 | 1.01 | 1.05 | |
Lockheed Martin Corp. | 1.29 | 1.26 | 1.20 | 1.10 | 0.99 | |
Raytheon Technologies Corp. | 0.35 | 0.55 | 0.50 | 0.62 | 0.64 | |
Total Asset Turnover, Sector | ||||||
Aerospace & Defense | 0.53 | 0.68 | 0.75 | 0.85 | 0.88 | |
Total Asset Turnover, Industry | ||||||
Industrials | 0.55 | 0.63 | 0.67 | 0.62 | 0.62 |
Based on: 10-K (filing date: 2021-01-28), 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).
1 2020 Calculation
Total asset turnover = Sales ÷ Total assets
= 36,799 ÷ 44,469 = 0.83
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 2018 to 2019 and from 2019 to 2020. |
Equity Turnover
Northrop Grumman Corp., equity turnover calculation, comparison to benchmarks
Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Sales | 36,799 | 33,841 | 30,095 | 25,803 | 24,508 | |
Shareholders’ equity | 10,579 | 8,819 | 8,187 | 7,048 | 5,259 | |
Long-term Activity Ratio | ||||||
Equity turnover1 | 3.48 | 3.84 | 3.68 | 3.66 | 4.66 | |
Benchmarks | ||||||
Equity Turnover, Competitors2 | ||||||
Boeing Co. | — | — | 298.31 | 263.08 | 115.75 | |
Lockheed Martin Corp. | 10.87 | 19.13 | 38.57 | — | 31.27 | |
Raytheon Technologies Corp. | 0.78 | 1.84 | 1.73 | 2.02 | 2.08 | |
Equity Turnover, Sector | ||||||
Aerospace & Defense | 3.08 | 5.48 | 5.20 | 6.33 | 6.36 | |
Equity Turnover, Industry | ||||||
Industrials | 2.74 | 3.45 | 3.55 | 2.96 | 2.87 |
Based on: 10-K (filing date: 2021-01-28), 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).
1 2020 Calculation
Equity turnover = Sales ÷ Shareholders’ equity
= 36,799 ÷ 10,579 = 3.48
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 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |