Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Northrop Grumman's Average Total Inventories for the quarter that ended in Mar. 2026 was $1,380 Mil. Northrop Grumman's Revenue for the
three
months ended in Mar. 2026 was $9,881 Mil.
Northrop Grumman's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 0.14.
Northrop Grumman's Inventory-to-Revenue for the quarter that ended in Mar. 2026
increased
from Dec. 2025 (0.13) to Dec. 2025 (0.14)
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Northrop Grumman's Days Inventory for the
three
months ended in Mar. 2026 was 15.89.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Northrop Grumman's Inventory Turnover for the quarter that ended in Mar. 2026 was 5.74.
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
More Related Terms:
1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Northrop Grumman's Days Inventory for the
three
months ended in Mar. 2026 is calculated as:
* 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.
Northrop Grumman Inventory-to-Revenue Related Terms
Northrop Grumman Inventory-to-Revenue Historical Data
* Premium members only.
The historical data trend for Northrop Grumman's Inventory-to-Revenue 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.
NOC vs RKLB, TDG, GD: Inventory-to-Revenue Comparison
For the Aerospace & Defense subindustry, Northrop Grumman's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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 Inventory-to-Revenue vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's Inventory-to-Revenue falls into.
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Northrop Grumman's Inventory-to-Revenue for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Northrop Grumman (NOC) has a Inventory-to-Revenue of 0.14 as of Mar. 2026. Inventory-to-Sales ratio is the total inventories divided by total sales. View historical data on Northrop Grumman and its competitors.
Is Northrop Grumman's Inventory-to-Revenue too high?
Northrop Grumman's current Inventory-to-Revenue is 0.14. Overall, Northrop Grumman has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Northrop Grumman's Inventory-to-Revenue compare to RKLB and TDG?
Northrop Grumman's Inventory-to-Revenue of 0.14 can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory-to-Revenue for an Aerospace & Defense company?
A good Inventory-to-Revenue depends on the Aerospace & Defense industry context. However, Inventory-to-Revenue should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory-to-Revenue mean?
A high Inventory-to-Revenue can signal that a stock is expensive relative to its fundamentals. Inventory-to-Sales ratio is the total inventories divided by total sales. View historical data on Northrop Grumman and its competitors. Northrop Grumman's current Inventory-to-Revenue is 0.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northrop Grumman stock overvalued right now?
Based on GuruFocus' analysis, Northrop Grumman (NOC) is currently considered Modestly Undervalued. The stock's GF Value™ is $557.59, compared to a current price of $503.93 — trading 9.6% below its estimated fair value. The current Inventory-to-Revenue is 0.14. Northrop Grumman's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory-to-Revenue calculated?
Inventory-to-Revenue is calculated from a company's financial statements. For Northrop Grumman (NOC), the current Inventory-to-Revenue is 0.14 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Northrop Grumman (NOC) Overvalued in 2026?
Based on GuruFocus' analysis, Northrop Grumman stock appears to be undervalued.
The current stock price of $503.93 is trading 9.6% below its estimated GF Value™ of $557.59.
GuruFocus considers Northrop Grumman to be Modestly Undervalued.
Key valuation signals for NOC:
Inventory-to-Revenue: 0.14
GF Value™: $557.59 vs. price of $503.93 (9.6% below fair value)
No single metric tells the full story. See the NOC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northrop Grumman is a diversified defense contractor providing aeronautics, defense, and space systems. The company's aerospace segment produces autonomous and piloted aircraft such as Global Hawk drones and the new B-21 bomber, creates the fuselage for the massive F-35 program, and maintains and upgrades numerous other military aircraft. Defense systems makes artillery and missile ammunition and guidance systems, long-range missiles, and missile defense systems. 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. Space systems produces satellites, sensors, space structures, and rocket motors.
86GF Score
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