Stock Analysis on Net
Stock Analysis on Net

Northrop Grumman Corp. (NYSE:NOC)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Beginner level


Short-term Activity Ratios (Summary)

Northrop Grumman Corp., short-term (operating) activity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Turnover Ratios
Inventory turnover 32.84 34.38 33.95 32.64 31.83 31.65 35.63 30.68 30.40 46.59 25.45 19.41 18.48 20.29 22.95 22.82 18.54 19.94 22.16
Receivables turnover 17.45 16.04 25.52 15.76 17.95 14.57 20.78 16.79 14.88 21.17 6.49 5.79 5.89 6.10 7.43 6.51 6.78 7.03 8.28
Payables turnover 13.62 13.03 11.94 13.08 13.14 12.74 10.68 11.37 11.50 14.53 11.95 12.97 13.86 13.78 12.05 13.73 14.19 14.87 13.95
Working capital turnover 10.05 11.61 27.05 13.75 16.41 19.45 21.40 13.65 14.30 2.70 2.75 19.68 37.16 17.73 19.99 35.80 34.65 31.32 26.83
Average No. Days
Average inventory processing period 11 11 11 11 11 12 10 12 12 8 14 19 20 18 16 16 20 18 16
Add: Average receivable collection period 21 23 14 23 20 25 18 22 25 17 56 63 62 60 49 56 54 52 44
Operating cycle 32 34 25 34 31 37 28 34 37 25 70 82 82 78 65 72 74 70 60
Less: Average payables payment period 27 28 31 28 28 29 34 32 32 25 31 28 26 26 30 27 26 25 26
Cash conversion cycle 5 6 -6 6 3 8 -6 2 5 0 39 54 56 52 35 45 48 45 34

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Northrop Grumman Corp.’s inventory turnover ratio improved from Q4 2019 to Q1 2020 but then deteriorated significantly from Q1 2020 to Q2 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Northrop Grumman Corp.’s receivables turnover ratio deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Northrop Grumman Corp.’s payables turnover ratio increased from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Northrop Grumman Corp.’s working capital turnover ratio deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Northrop Grumman Corp.’s number of days of receivables outstanding deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Northrop Grumman Corp.’s operating cycle deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Northrop Grumman Corp.’s number of days of payables outstanding decreased from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Northrop Grumman Corp.’s cash conversion cycle deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.

Inventory Turnover

Northrop Grumman Corp., inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Cost of sales 7,058  6,898  6,615  6,748  6,726  6,493  6,469  6,096  5,563  5,176  5,221  5,016  4,854  4,758  4,920  4,667  4,583  4,561  4,378  4,522  4,442  4,542 
Inventoried costs, net 832  785  783  810  810  778  654  719  690  435  780  1,007  1,039  933  816  797  973  898  807  856  856  818 
Short-term Activity Ratio
Inventory turnover1 32.84 34.38 33.95 32.64 31.83 31.65 35.63 30.68 30.40 46.59 25.45 19.41 18.48 20.29 22.95 22.82 18.54 19.94 22.16
Benchmarks
Inventory Turnover, Competitors2
Boeing Co. 0.78 0.88 0.94 1.03 1.16 1.24 1.30 1.29 1.28 1.27 1.71 1.74 1.77 1.82 1.87 1.92 1.89 1.75 1.74
General Dynamics Corp. 4.79 4.66 5.12 4.88 4.86 5.03 4.93 4.42 4.46 4.48 4.67 4.26 4.25 4.26 7.13 6.78 7.12 7.22 7.53
Lockheed Martin Corp. 15.46 14.94 14.22 14.44 13.74 14.81 15.51 15.59 15.13 14.26 10.14 9.24 8.85 8.44 9.03 8.53 8.07 7.92 8.25
Raytheon Technologies Corp. 5.32 4.93 5.21 4.99 4.98 5.00 4.96 5.29 5.18 5.05 4.45 4.26 4.28 4.46 4.76 4.56 4.67 4.77 4.97

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

1 Q2 2020 Calculation
Inventory turnover = (Cost of salesQ2 2020 + Cost of salesQ1 2020 + Cost of salesQ4 2019 + Cost of salesQ3 2019) ÷ Inventoried costs, net
= (7,058 + 6,898 + 6,615 + 6,748) ÷ 832 = 32.84

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Northrop Grumman Corp.’s inventory turnover ratio improved from Q4 2019 to Q1 2020 but then deteriorated significantly from Q1 2020 to Q2 2020.

Receivables Turnover

Northrop Grumman Corp., receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Sales 8,884  8,620  8,721  8,475  8,456  8,189  8,156  8,085  7,119  6,735  6,634  6,527  6,375  6,267  6,397  6,155  6,000  5,956  5,694  5,979  5,896  5,957 
Accounts receivable, net 1,989  2,136  1,326  2,111  1,832  2,166  1,448  1,702  1,815  1,241  3,976  4,414  4,280  4,072  3,299  3,659  3,483  3,346  2,841  3,268  3,151  3,131 
Short-term Activity Ratio
Receivables turnover1 17.45 16.04 25.52 15.76 17.95 14.57 20.78 16.79 14.88 21.17 6.49 5.79 5.89 6.10 7.43 6.51 6.78 7.03 8.28
Benchmarks
Receivables Turnover, Competitors2
Boeing Co. 23.85 21.97 23.44 24.41 28.00 27.44 26.07 33.93 34.47 34.19 8.88 8.58 9.57 9.95 10.71 9.96 9.87 9.95 11.03
General Dynamics Corp. 10.97 10.95 11.10 11.17 10.42 10.20 9.63 9.13 8.41 8.24 8.56 9.12 8.42 8.92 8.68 8.83 8.81 8.60 9.13
Lockheed Martin Corp. 22.19 21.14 25.59 24.47 22.58 19.93 22.00 22.55 21.09 21.76 5.93 5.51 5.60 5.41 5.76 5.18 4.99 5.38 5.72
Raytheon Technologies Corp. 7.51 5.87 5.70 5.55 5.30 5.13 4.66 5.11 5.24 5.24 4.75 4.48 4.61 4.87 4.99 4.95 4.88 5.15 5.27

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

1 Q2 2020 Calculation
Receivables turnover = (SalesQ2 2020 + SalesQ1 2020 + SalesQ4 2019 + SalesQ3 2019) ÷ Accounts receivable, net
= (8,884 + 8,620 + 8,721 + 8,475) ÷ 1,989 = 17.45

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Northrop Grumman Corp.’s receivables turnover ratio deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.

Payables Turnover

Northrop Grumman Corp., payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Cost of sales 7,058  6,898  6,615  6,748  6,726  6,493  6,469  6,096  5,563  5,176  5,221  5,016  4,854  4,758  4,920  4,667  4,583  4,561  4,378  4,522  4,442  4,542 
Trade accounts payable 2,006  2,071  2,226  2,021  1,962  1,932  2,182  1,939  1,824  1,395  1,661  1,507  1,385  1,374  1,554  1,325  1,272  1,204  1,282  1,194  1,246  1,248 
Short-term Activity Ratio
Payables turnover1 13.62 13.03 11.94 13.08 13.14 12.74 10.68 11.37 11.50 14.53 11.95 12.97 13.86 13.78 12.05 13.73 14.19 14.87 13.95
Benchmarks
Payables Turnover, Competitors2
Boeing Co. 4.77 4.69 4.63 4.99 5.21 5.53 6.30 5.84 6.10 6.15 6.23 5.90 6.20 6.59 7.21 6.84 7.12 7.15 7.59
General Dynamics Corp. 13.39 11.45 10.21 10.69 11.01 10.35 9.27 9.11 8.66 8.72 7.73 9.07 9.47 10.06 9.89 10.89 11.78 11.77 12.90
Lockheed Martin Corp. 37.46 16.70 40.16 17.27 18.94 15.71 19.35 17.67 17.18 16.79 31.02 15.58 17.12 15.75 25.52 14.58 14.91 15.23 20.74
Raytheon Technologies Corp. 7.60 5.17 5.28 5.17 4.90 5.06 4.51 4.56 4.83 5.09 4.59 4.77 4.95 5.57 5.54 5.57 5.64 6.17 5.88

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

1 Q2 2020 Calculation
Payables turnover = (Cost of salesQ2 2020 + Cost of salesQ1 2020 + Cost of salesQ4 2019 + Cost of salesQ3 2019) ÷ Trade accounts payable
= (7,058 + 6,898 + 6,615 + 6,748) ÷ 2,006 = 13.62

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Northrop Grumman Corp.’s payables turnover ratio increased from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Working Capital Turnover

Northrop Grumman Corp., working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Current assets 13,179  13,128  10,685  10,836  10,159  10,443  9,680  10,132  9,722  16,157  16,349  7,599  6,864  6,568  6,856  5,771  5,781  5,706  6,334  5,951  6,460  7,143 
Less: Current liabilities 9,727  10,177  9,434  8,416  8,155  8,821  8,274  8,039  7,833  6,415  6,965  6,300  6,186  5,168  5,630  5,106  5,099  4,955  5,457  5,133  5,154  5,284 
Working capital 3,452  2,951  1,251  2,420  2,004  1,622  1,406  2,093  1,889  9,742  9,384  1,299  678  1,400  1,226  665  682  751  877  818  1,306  1,859 
 
Sales 8,884  8,620  8,721  8,475  8,456  8,189  8,156  8,085  7,119  6,735  6,634  6,527  6,375  6,267  6,397  6,155  6,000  5,956  5,694  5,979  5,896  5,957 
Short-term Activity Ratio
Working capital turnover1 10.05 11.61 27.05 13.75 16.41 19.45 21.40 13.65 14.30 2.70 2.75 19.68 37.16 17.73 19.99 35.80 34.65 31.32 26.83
Benchmarks
Working Capital Turnover, Competitors2
Boeing Co. 1.76 4.27 15.57 8.87 31.54 17.08 16.21 11.87 11.22 8.70 10.50 9.38 9.16 7.38 7.66 6.90 7.09 6.01 5.39
General Dynamics Corp. 8.51 6.16 13.21 20.25 24.81 10.88 10.49 7.99 10.01 5.95 5.92 6.35 8.58 9.01 12.05 9.09 13.86 17.80 14.80
Lockheed Martin Corp. 13.44 17.12 19.15 13.61 19.37 21.49 31.53 32.92 19.95 13.44 10.58 12.04 16.77 16.04 18.41 17.29 96.91 54.26 21.55
Raytheon Technologies Corp. 10.21 10.43 26.47 33.59 44.35 17.41 16.08 4.68 5.46 7.66 7.07 7.62 6.52 10.34 8.62 9.47 9.73 8.01 13.72

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

1 Q2 2020 Calculation
Working capital turnover = (SalesQ2 2020 + SalesQ1 2020 + SalesQ4 2019 + SalesQ3 2019) ÷ Working capital
= (8,884 + 8,620 + 8,721 + 8,475) ÷ 3,452 = 10.05

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Northrop Grumman Corp.’s working capital turnover ratio deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Average Inventory Processing Period

Northrop Grumman Corp., average inventory processing period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data
Inventory turnover 32.84 34.38 33.95 32.64 31.83 31.65 35.63 30.68 30.40 46.59 25.45 19.41 18.48 20.29 22.95 22.82 18.54 19.94 22.16
Short-term Activity Ratio (no. days)
Average inventory processing period1 11 11 11 11 11 12 10 12 12 8 14 19 20 18 16 16 20 18 16
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boeing Co. 468 416 388 355 314 294 280 284 284 289 213 209 207 200 195 190 193 209 210
General Dynamics Corp. 76 78 71 75 75 73 74 83 82 81 78 86 86 86 51 54 51 51 48
Lockheed Martin Corp. 24 24 26 25 27 25 24 23 24 26 36 40 41 43 40 43 45 46 44
Raytheon Technologies Corp. 69 74 70 73 73 73 74 69 71 72 82 86 85 82 77 80 78 77 73

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

1 Q2 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 32.84 = 11

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

Northrop Grumman Corp., average receivable collection period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data
Receivables turnover 17.45 16.04 25.52 15.76 17.95 14.57 20.78 16.79 14.88 21.17 6.49 5.79 5.89 6.10 7.43 6.51 6.78 7.03 8.28
Short-term Activity Ratio (no. days)
Average receivable collection period1 21 23 14 23 20 25 18 22 25 17 56 63 62 60 49 56 54 52 44
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boeing Co. 15 17 16 15 13 13 14 11 11 11 41 43 38 37 34 37 37 37 33
General Dynamics Corp. 33 33 33 33 35 36 38 40 43 44 43 40 43 41 42 41 41 42 40
Lockheed Martin Corp. 16 17 14 15 16 18 17 16 17 17 62 66 65 68 63 70 73 68 64
Raytheon Technologies Corp. 49 62 64 66 69 71 78 71 70 70 77 81 79 75 73 74 75 71 69

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

1 Q2 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 17.45 = 21

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Northrop Grumman Corp.’s number of days of receivables outstanding deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.

Operating Cycle

Northrop Grumman Corp., operating cycle calculation (quarterly data)

No. days

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data
Average inventory processing period 11 11 11 11 11 12 10 12 12 8 14 19 20 18 16 16 20 18 16
Average receivable collection period 21 23 14 23 20 25 18 22 25 17 56 63 62 60 49 56 54 52 44
Short-term Activity Ratio
Operating cycle1 32 34 25 34 31 37 28 34 37 25 70 82 82 78 65 72 74 70 60
Benchmarks
Operating Cycle, Competitors2
Boeing Co. 483 433 404 370 327 307 294 295 295 300 254 252 245 237 229 227 230 246 243
General Dynamics Corp. 109 111 104 108 110 109 112 123 125 125 121 126 129 127 93 95 92 93 88
Lockheed Martin Corp. 40 41 40 40 43 43 41 39 41 43 98 106 106 111 103 113 118 114 108
Raytheon Technologies Corp. 118 136 134 139 142 144 152 140 141 142 159 167 164 157 150 154 153 148 142

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

1 Q2 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 11 + 21 = 32

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Northrop Grumman Corp.’s operating cycle deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.

Average Payables Payment Period

Northrop Grumman Corp., average payables payment period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data
Payables turnover 13.62 13.03 11.94 13.08 13.14 12.74 10.68 11.37 11.50 14.53 11.95 12.97 13.86 13.78 12.05 13.73 14.19 14.87 13.95
Short-term Activity Ratio (no. days)
Average payables payment period1 27 28 31 28 28 29 34 32 32 25 31 28 26 26 30 27 26 25 26
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boeing Co. 77 78 79 73 70 66 58 63 60 59 59 62 59 55 51 53 51 51 48
General Dynamics Corp. 27 32 36 34 33 35 39 40 42 42 47 40 39 36 37 34 31 31 28
Lockheed Martin Corp. 10 22 9 21 19 23 19 21 21 22 12 23 21 23 14 25 24 24 18
Raytheon Technologies Corp. 48 71 69 71 75 72 81 80 76 72 80 76 74 66 66 66 65 59 62

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

1 Q2 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 13.62 = 27

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Northrop Grumman Corp.’s number of days of payables outstanding decreased from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Cash Conversion Cycle

Northrop Grumman Corp., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data
Average inventory processing period 11 11 11 11 11 12 10 12 12 8 14 19 20 18 16 16 20 18 16
Average receivable collection period 21 23 14 23 20 25 18 22 25 17 56 63 62 60 49 56 54 52 44
Average payables payment period 27 28 31 28 28 29 34 32 32 25 31 28 26 26 30 27 26 25 26
Short-term Activity Ratio
Cash conversion cycle1 5 6 -6 6 3 8 -6 2 5 0 39 54 56 52 35 45 48 45 34
Benchmarks
Cash Conversion Cycle, Competitors2
Boeing Co. 406 355 325 297 257 241 236 232 235 241 195 190 186 182 178 174 179 195 195
General Dynamics Corp. 82 79 68 74 77 74 73 83 83 83 74 86 90 91 56 61 61 62 60
Lockheed Martin Corp. 30 19 31 19 24 20 22 18 20 21 86 83 85 88 89 88 94 90 90
Raytheon Technologies Corp. 70 65 65 68 67 72 71 60 65 70 79 91 90 91 84 88 88 89 80

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

1 Q2 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 11 + 2127 = 5

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Northrop Grumman Corp.’s cash conversion cycle deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.