Northrop Grumman (Northrop Grumman) Net-Net Working Capital : $-190.72 (As of Mar. 2024)

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What is Northrop Grumman Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Northrop Grumman's Net-Net Working Capital for the quarter that ended in Mar. 2024 was $-190.72.

The industry rank for Northrop Grumman's Net-Net Working Capital or its related term are showing as below:

NOC's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Aerospace & Defense industry.
Industry Median: 8.59
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Northrop Grumman Net-Net Working Capital Historical Data

The historical data trend for Northrop Grumman's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Northrop Grumman Net-Net Working Capital Chart

Northrop Grumman Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Net-Net Working Capital

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-170.62

-164.82

-157.52

-158.29

-179.84

Northrop Grumman Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Net-Net Working Capital	Get a 7-Day Free Trial															-161.30	-161.99	-164.95	-179.84	-190.72

Competitive Comparison of Northrop Grumman's Net-Net Working Capital

For the Aerospace & Defense subindustry, Northrop Grumman's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Northrop Grumman's Price-to-Net-Net-Working-Capital Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Northrop Grumman's Price-to-Net-Net-Working-Capital falls into.

Northrop Grumman Net-Net Working Capital Calculation

Northrop Grumman's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

	Net-Net Working Capital		(A: Dec. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(3109	+	0.75 * 1454	+	0.5 * 1109	-	31749
-	0	-	0)	/	150.109
=	-179.84

Northrop Grumman's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2024 is calculated as

	Net-Net Working Capital		(Q: Mar. 2024 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(3061	+	0.75 * 1832	+	0.5 * 1370	-	33595
-	0	-	0)	/	149.300
=	-190.72

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

Northrop Grumman (NYSE:NOC) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

Northrop Grumman Net-Net Working Capital Related Terms

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Northrop Grumman (Northrop Grumman) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Northrop Grumman Corp (NYSE:NOC) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

NOC:Mexico NTH:Germany NTH:Germany NTH:Germany NOCG34:Brazil NOCO:Austria

Address

2980 Fairview Park Drive, Falls Church, VA, USA, 22042

Website

https://www.northropgrumman.com

Northrop Grumman is a diversified defense contractor providing aeronautics, defense, mission, and space systems. The company's aerospace segment creates the fuselage for the massive F-35 program and produces autonomous and piloted aircraft such as Global Hawk drones and the new B-21 bomber. Defense systems makes artillery and missile ammunition and guidance systems, missile defense systems, and conducts maintenance and upgrades on numerous military aircraft. Mission systems creates and integrates a variety of radar, navigation, and communication systems for avionics, weapons control, and countermeasures on a range of platforms from helicopters to destroyers. Finally, space systems produces satellites, sensors, space structures, and manufactures long-range missiles and rocket motors.

Executives

Mark A Caylor	officer: Corp VP & Pres ESS	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Kathryn G Simpson	officer: Corp VP & General Counsel	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Robert J. Fleming	officer: CVP and Pres. Space Systems	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Roshan S Roeder	officer: CVP & Pres. Defense Systems	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Mary A Winston	director	557 BROADWAY, C/O SCHOLASTIC CORP, NEW YORK NY 10012
Kimberly A. Ross	director	C/O AVON PRODUCTS,INC., 1345 AVENUE OF THE AMERICAS`, NEW YORK NY 10105-0196
David T Perry	officer: CVP Chief Global Bus Dev Off	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Lucy C Ryan	officer: Corp VP, Communications	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Michael A Hardesty	officer: Corp VP, Controller & CAO	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Thomas H Jones	officer: CVP & Pres Aeronautics Systems	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Mary D Petryszyn	officer: CVP, Pres, Defense Systems	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Sheila C. Cheston	officer: Corp. VP & General Counsel	C/O NORTHROP GRUMMAN CORPORATION, 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Stephen F. O'bryan	officer: CVP Global Bus Dev Officer	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Arvind Krishna	director	IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Wilson Thomas L Jr	officer: CVP and Pres. Space Systems	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042