Microsoft Excel LibreOffice Calc

Northrop Grumman Corp. (NOC)

Analysis of Long-term (Investment) Activity Ratios

Difficulty: Beginner

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

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net fixed asset turnover 4.72 6.11 6.83 7.68 8.02
Total asset turnover 0.80 0.74 0.96 0.96 0.90
Equity turnover 3.68 3.66 4.66 4.26 3.31

Based on: 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), 10-K (filing date: 2015-02-02).

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 2016 to 2017 and from 2017 to 2018.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Northrop Grumman Corp.’s total asset turnover ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Northrop Grumman Corp.’s equity turnover ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Net Fixed Asset Turnover

Northrop Grumman Corp., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Sales 30,095  25,803  24,508  23,526  23,979 
Property, plant and equipment, net of accumulated depreciation 6,372  4,225  3,588  3,064  2,991 
Long-term Activity Ratio
Net fixed asset turnover1 4.72 6.11 6.83 7.68 8.02
Benchmarks
Net Fixed Asset Turnover, Competitors2
Boeing Co. 8.00 7.37 7.38 7.96 8.25
General Dynamics Corp. 8.32 8.81 9.04 9.08 9.27
Lockheed Martin Corp. 8.78 8.84 8.51 8.40 9.59
Raytheon Co. 9.53 10.39 11.11 11.59 11.80
United Technologies Corp. 5.41 5.87 6.25 6.42 7.02
Net Fixed Asset Turnover, Sector
Aerospace & Defense 7.05 7.38 7.59 7.94 8.38
Net Fixed Asset Turnover, Industry
Industrials 3.06 2.93 2.91 2.97 2.99

Based on: 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), 10-K (filing date: 2015-02-02).

1 2018 Calculation
Net fixed asset turnover = Sales ÷ Property, plant and equipment, net of accumulated depreciation
= 30,095 ÷ 6,372 = 4.72

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 2016 to 2017 and from 2017 to 2018.

Total Asset Turnover

Northrop Grumman Corp., total asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Sales 30,095  25,803  24,508  23,526  23,979 
Total assets 37,653  34,917  25,614  24,454  26,572 
Long-term Activity Ratio
Total asset turnover1 0.80 0.74 0.96 0.96 0.90
Benchmarks
Total Asset Turnover, Competitors2
Boeing Co. 0.86 1.01 1.05 1.02 0.91
General Dynamics Corp. 0.80 0.88 0.95 0.98 0.87
Lockheed Martin Corp. 1.20 1.10 0.99 0.94 1.23
Raytheon Co. 0.85 0.82 0.80 0.79 0.82
United Technologies Corp. 0.50 0.62 0.64 0.64 0.71
Total Asset Turnover, Sector
Aerospace & Defense 0.77 0.85 0.88 0.87 0.88
Total Asset Turnover, Industry
Industrials 0.67 0.63 0.62 0.58 0.53

Based on: 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), 10-K (filing date: 2015-02-02).

1 2018 Calculation
Total asset turnover = Sales ÷ Total assets
= 30,095 ÷ 37,653 = 0.80

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 deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Equity Turnover

Northrop Grumman Corp., equity turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Sales 30,095  25,803  24,508  23,526  23,979 
Shareholders’ equity 8,187  7,048  5,259  5,522  7,235 
Long-term Activity Ratio
Equity turnover1 3.68 3.66 4.66 4.26 3.31
Benchmarks
Equity Turnover, Competitors2
Boeing Co. 298.31 263.08 115.75 15.17 10.47
General Dynamics Corp. 3.08 2.71 2.86 2.93 2.61
Lockheed Martin Corp. 38.57 — 31.27 14.90 13.41
Raytheon Co. 2.36 2.54 2.39 2.30 2.40
United Technologies Corp. 1.73 2.02 2.08 2.05 2.09
Equity Turnover, Sector
Aerospace & Defense 4.40 4.96 4.96 4.38 3.88
Equity Turnover, Industry
Industrials 3.28 2.81 2.72 2.42 2.15

Based on: 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), 10-K (filing date: 2015-02-02).

1 2018 Calculation
Equity turnover = Sales ÷ Shareholders’ equity
= 30,095 ÷ 8,187 = 3.68

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 deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.