GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Northrop Grumman Corp (NYSE:NOC) » Definitions » Asset Turnover

NOC (Northrop Grumman) Asset Turnover : 0.21 (As of Sep. 2024)


View and export this data going back to 1985. Start your Free Trial

What is Northrop Grumman Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Northrop Grumman's Revenue for the three months ended in Sep. 2024 was $9,996 Mil. Northrop Grumman's Total Assets for the quarter that ended in Sep. 2024 was $47,980 Mil. Therefore, Northrop Grumman's Asset Turnover for the quarter that ended in Sep. 2024 was 0.21.

Asset Turnover is linked to ROE % through Du Pont Formula. Northrop Grumman's annualized ROE % for the quarter that ended in Sep. 2024 was 28.26%. It is also linked to ROA % through Du Pont Formula. Northrop Grumman's annualized ROA % for the quarter that ended in Sep. 2024 was 8.55%.


Northrop Grumman Asset Turnover Historical Data

The historical data trend for Northrop Grumman's Asset 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.

* Premium members only.

Northrop Grumman Asset Turnover Chart

Northrop Grumman Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.86 0.86 0.82 0.85 0.87

Northrop Grumman Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.22 0.23 0.22 0.21 0.21

Competitive Comparison of Northrop Grumman's Asset Turnover

For the Aerospace & Defense subindustry, Northrop Grumman's Asset Turnover, along with its competitors' market caps and Asset Turnover 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 Asset Turnover Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Northrop Grumman's Asset Turnover falls into.



Northrop Grumman Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=39290/( (43755+46544)/ 2 )
=39290/45149.5
=0.87

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Sep. 2024 )/( (Total Assets (Q: Jun. 2024 )+Total Assets (Q: Sep. 2024 ))/ count )
=9996/( (47670+48289)/ 2 )
=9996/47979.5
=0.21

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


Northrop Grumman  (NYSE:NOC) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Northrop Grumman's annulized ROE % for the quarter that ended in Sep. 2024 is

ROE %**(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=4104/14524.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4104 / 39984)*(39984 / 47979.5)*(47979.5/ 14524.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.26 %*0.8334*3.3033
=ROA %*Equity Multiplier
=8.55 %*3.3033
=28.26 %

Note: The Net Income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Northrop Grumman's annulized ROA % for the quarter that ended in Sep. 2024 is

ROA %(Q: Sep. 2024 )
=Net Income/Total Assets
=4104/47979.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(4104 / 39984)*(39984 / 47979.5)
=Net Margin %*Asset Turnover
=10.26 %*0.8334
=8.55 %

Note: The Net Income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data.

* 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.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Northrop Grumman Asset Turnover Related Terms

Thank you for viewing the detailed overview of Northrop Grumman's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Northrop Grumman Business Description

Address
2980 Fairview Park Drive, Falls Church, VA, USA, 22042
Northrop Grumman is a diversified defense contractor providing aeronautics, defense, 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 maintains and upgrades 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. Space systems produces satellites, sensors, space structures, and manufactures long-range missiles and rocket motors.
Executives
Welsh Mark A Iii director 6020 AUGUSTA CIRCLE, COLLEGE STATION TX 77845
Thomas H Jones officer: CVP & Pres Aeronautics 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
Kathryn G Simpson officer: Corp VP & General Counsel 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Michael A Hardesty officer: Corp VP, Controller & CAO 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Mark A Caylor officer: Corp VP & Pres ESS 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
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
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