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 (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).
| 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. net fixed asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| 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. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Northrop Grumman Corp. total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Northrop Grumman Corp. equity turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover
Northrop Grumman Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 36,602) | 35,667) | 36,799) | 33,841) | 30,095) | |
| Property, plant and equipment, net of accumulated depreciation | 8,800) | 7,894) | 7,071) | 6,912) | 6,372) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 4.16 | 4.52 | 5.20 | 4.90 | 4.72 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | — | 5.70 | 4.92 | 6.12 | 8.00 | |
| Caterpillar Inc. | — | 3.99 | 3.15 | 3.93 | 3.82 | |
| General Electric Co. | — | 5.47 | 1.75 | 2.02 | 2.24 | |
| Honeywell International Inc. | — | 6.18 | 5.86 | 6.89 | 7.89 | |
| Lockheed Martin Corp. | 8.27 | 8.83 | 9.07 | 9.07 | 8.78 | |
| Raytheon Technologies Corp. | — | 4.30 | 3.78 | 6.04 | 5.41 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | — | 5.32 | 3.59 | 4.21 | 4.28 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | — | 2.39 | 1.97 | 2.32 | 2.45 | |
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
Net fixed asset turnover = Sales ÷ Property, plant and equipment, net of accumulated depreciation
= 36,602 ÷ 8,800 = 4.16
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. net fixed asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
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, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 36,602) | 35,667) | 36,799) | 33,841) | 30,095) | |
| Property, plant and equipment, net of accumulated depreciation | 8,800) | 7,894) | 7,071) | 6,912) | 6,372) | |
| Operating lease right-of-use assets | 1,811) | 1,655) | 1,533) | 1,511) | —) | |
| Property, plant and equipment, net of accumulated depreciation (including operating lease, right-of-use asset) | 10,611) | 9,549) | 8,604) | 8,423) | 6,372) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.45 | 3.74 | 4.28 | 4.02 | 4.72 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | — | 5.04 | 4.45 | 5.59 | 8.00 | |
| Caterpillar Inc. | — | 3.79 | 3.00 | 3.75 | 3.82 | |
| General Electric Co. | — | 4.55 | 1.63 | 1.89 | 2.24 | |
| Honeywell International Inc. | — | 5.28 | 5.15 | 6.12 | 7.89 | |
| Lockheed Martin Corp. | 7.27 | 7.54 | 7.96 | 7.88 | 8.78 | |
| Raytheon Technologies Corp. | — | 3.80 | 3.36 | 5.02 | 5.41 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | — | 4.64 | 3.27 | 3.81 | 4.28 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | — | 2.09 | 1.76 | 2.16 | 2.45 | |
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
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)
= 36,602 ÷ 10,611 = 3.45
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. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2020 to 2021 and from 2021 to 2022. |
Total Asset Turnover
Northrop Grumman Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 36,602) | 35,667) | 36,799) | 33,841) | 30,095) | |
| Total assets | 43,755) | 42,579) | 44,469) | 41,089) | 37,653) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.84 | 0.84 | 0.83 | 0.82 | 0.80 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | — | 0.45 | 0.38 | 0.57 | 0.86 | |
| Caterpillar Inc. | — | 0.58 | 0.50 | 0.65 | 0.66 | |
| General Electric Co. | — | 0.36 | 0.29 | 0.33 | 0.37 | |
| Honeywell International Inc. | — | 0.53 | 0.51 | 0.63 | 0.72 | |
| Lockheed Martin Corp. | 1.25 | 1.32 | 1.29 | 1.26 | 1.20 | |
| Raytheon Technologies Corp. | — | 0.40 | 0.35 | 0.55 | 0.50 | |
| Total Asset Turnover, Sector | ||||||
| Capital Goods | — | 0.52 | 0.45 | 0.55 | 0.59 | |
| Total Asset Turnover, Industry | ||||||
| Industrials | — | 0.59 | 0.51 | 0.62 | 0.66 | |
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
Total asset turnover = Sales ÷ Total assets
= 36,602 ÷ 43,755 = 0.84
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. total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Equity Turnover
Northrop Grumman Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 36,602) | 35,667) | 36,799) | 33,841) | 30,095) | |
| Shareholders’ equity | 15,312) | 12,926) | 10,579) | 8,819) | 8,187) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 2.39 | 2.76 | 3.48 | 3.84 | 3.68 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | 298.31 | |
| Caterpillar Inc. | — | 2.92 | 2.55 | 3.48 | 3.69 | |
| General Electric Co. | — | 1.76 | 2.05 | 3.09 | 3.66 | |
| Honeywell International Inc. | — | 1.85 | 1.86 | 1.98 | 2.30 | |
| Lockheed Martin Corp. | 7.12 | 6.12 | 10.87 | 19.13 | 38.57 | |
| Raytheon Technologies Corp. | — | 0.88 | 0.78 | 1.84 | 1.73 | |
| Equity Turnover, Sector | ||||||
| Capital Goods | — | 2.43 | 2.60 | 3.96 | 4.11 | |
| Equity Turnover, Industry | ||||||
| Industrials | — | 2.73 | 2.89 | 3.80 | 3.80 | |
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
Equity turnover = Sales ÷ Shareholders’ equity
= 36,602 ÷ 15,312 = 2.39
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. equity turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |