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)
Net Fixed Asset Turnover
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Total Asset Turnover
Equity Turnover

Northrop Grumman Corp., long-term (investment) activity ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net fixed asset turnover	4.90	4.72	6.11	6.83	7.68
Net fixed asset turnover (including operating lease, right-of-use asset)	4.02	4.72	6.11	6.83	7.68
Total asset turnover	0.82	0.80	0.74	0.96	0.96
Equity turnover	3.84	3.68	3.66	4.66	4.26

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.

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	2.59	2.70	2.57	2.54	2.57

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.

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	2.42	2.70	2.57	2.54	2.57

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.

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	0.63	0.67	0.63	0.62	0.57

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.

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	3.46	3.55	2.96	2.88	2.51

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.

Northrop Grumman Corp. (NYSE:NOC)

Analysis of Long-term (Investment) Activity Ratios

Long-term Activity Ratios (Summary)

Net Fixed Asset Turnover

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Total Asset Turnover

Equity Turnover