Northrop Grumman (Northrop Grumman) Inventory Turnover : 6.45 (As of Mar. 2024)

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What is Northrop Grumman Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Northrop Grumman's Cost of Goods Sold for the three months ended in Mar. 2024 was $8,000 Mil. Northrop Grumman's Average Total Inventories for the quarter that ended in Mar. 2024 was $1,240 Mil. Northrop Grumman's Inventory Turnover for the quarter that ended in Mar. 2024 was 6.45.

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. 2024 was 14.14.

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 quarter that ended in Mar. 2024 was 0.12.

Northrop Grumman Inventory Turnover Historical Data

The historical data trend for Northrop Grumman's Inventory Turnover 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.

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Northrop Grumman Inventory Turnover Chart

Northrop Grumman Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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37.00

38.03

36.18

32.56

31.37

Northrop Grumman Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															6.99	6.27	5.85	8.24	6.45

Northrop Grumman Inventory Turnover Calculation

Northrop Grumman's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	32739	/ (	(978	+	1109)	/	2 )
=	32739	/	1043.5
=	31.37

Northrop Grumman's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	8000	/ (	(1109	+	1370)	/	2 )
=	8000	/	1239.5
=	6.45

Northrop Grumman (NYSE:NOC) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	1239.5	/	8000	*	365 / 4
	=	14.14

2. 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 quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	1239.5	/	10133
	=	0.12

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Northrop Grumman Inventory Turnover 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 » Inventory Turnover

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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