Northrop Grumman has a quick ratio of 1.02. It generally indicates good short-term financial strength.
The historical rank and industry rank for Northrop Grumman's Quick Ratio or its related term are showing as below:
NOC'
s Quick Ratio Range Over the Past 10 Years
Min: 0.99 Med: 1.08 Max: 2.28
Current: 1.05
During the past 13 years, Northrop Grumman's highest Quick Ratio was 2.28. The lowest was 0.99. And the median was 1.08.
NOC's Quick Ratio is ranked worse than 53.21% of 312
companies
in the Aerospace & Defense industry
Industry Median: 1.095
vs NOC: 1.05
Northrop Grumman Quick Ratio Historical Data
The historical data trend for Northrop Grumman's Quick Ratio 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.
Competitive Comparison of Northrop Grumman's Quick Ratio
For the Aerospace & Defense subindustry, Northrop Grumman's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's Quick Ratio falls into.
Northrop Grumman Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Northrop Grumman's Quick Ratio for the fiscal year that ended in Dec. 2023 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 (NYSE:NOC) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Northrop Grumman Quick Ratio Related Terms
Thank you for viewing the detailed overview of Northrop Grumman's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Northrop Grumman (Northrop Grumman) Business Description
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.
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