Northrop Operating Income vs Inventory Turnover Analysis

NOC Stock  USD 477.36  7.45  1.59%   
Northrop Grumman financial indicator trend analysis is infinitely more than just investigating Northrop Grumman recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Northrop Grumman is a good investment. Please check the relationship between Northrop Grumman Operating Income and its Inventory Turnover accounts. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Northrop Grumman. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons.
For information on how to trade Northrop Stock refer to our How to Trade Northrop Stock guide.

Operating Income vs Inventory Turnover

Operating Income vs Inventory Turnover Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Northrop Grumman Operating Income account and Inventory Turnover. At this time, the significance of the direction appears to have strong relationship.
The correlation between Northrop Grumman's Operating Income and Inventory Turnover is 0.62. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Inventory Turnover in the same time period over historical financial statements of Northrop Grumman, assuming nothing else is changed. The correlation between historical values of Northrop Grumman's Operating Income and Inventory Turnover is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of Northrop Grumman are associated (or correlated) with its Inventory Turnover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Inventory Turnover has no effect on the direction of Operating Income i.e., Northrop Grumman's Operating Income and Inventory Turnover go up and down completely randomly.

Correlation Coefficient

0.62
Relationship DirectionPositive 
Relationship StrengthSignificant

Operating Income

Operating Income is the amount of profit realized from Northrop Grumman operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Northrop Grumman is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.
Most indicators from Northrop Grumman's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Northrop Grumman current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Northrop Grumman. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons.
For information on how to trade Northrop Stock refer to our How to Trade Northrop Stock guide.At present, Northrop Grumman's Tax Provision is projected to increase significantly based on the last few years of reporting. The current year's Enterprise Value Multiple is expected to grow to 20.73, whereas Selling General Administrative is forecasted to decline to about 3 B.
 2021 2022 2023 2024 (projected)
Gross Profit7.3B7.5B39.3B41.3B
Total Revenue35.7B36.6B39.3B21.7B

Northrop Grumman fundamental ratios Correlations

0.820.790.780.80.70.710.590.30.980.860.30.82-0.050.840.610.570.060.860.880.270.92-0.19-0.740.360.12
0.820.750.890.570.880.90.560.240.780.760.240.94-0.270.930.550.68-0.040.960.760.470.77-0.43-0.610.3-0.05
0.790.750.770.770.80.740.420.080.770.680.080.82-0.180.640.480.710.380.710.69-0.10.76-0.41-0.40.050.05
0.780.890.770.760.960.880.740.040.790.870.040.96-0.030.80.790.790.170.90.630.510.77-0.29-0.670.180.15
0.80.570.770.760.670.520.730.150.80.880.150.690.190.480.730.610.410.590.680.110.760.03-0.62-0.060.18
0.70.880.80.960.670.930.59-0.110.730.77-0.110.96-0.270.730.670.780.180.840.520.420.72-0.42-0.460.050.14
0.710.90.740.880.520.930.4-0.20.770.68-0.20.96-0.380.80.490.680.070.870.480.440.76-0.51-0.450.20.05
0.590.560.420.740.730.590.40.310.560.880.310.580.360.530.860.52-0.080.630.560.440.510.13-0.810.170.41
0.30.240.080.040.15-0.11-0.20.310.090.221.0-0.030.20.310.12-0.01-0.250.230.680.040.090.15-0.360.22-0.21
0.980.780.770.790.80.730.770.560.090.850.090.84-0.070.810.610.550.090.840.760.290.95-0.21-0.730.350.2
0.860.760.680.870.880.770.680.880.220.850.220.810.060.710.810.590.020.80.740.410.82-0.06-0.790.140.29
0.30.240.080.040.15-0.11-0.20.311.00.090.22-0.030.20.310.12-0.01-0.250.230.680.040.090.15-0.360.22-0.21
0.820.940.820.960.690.960.960.58-0.030.840.81-0.03-0.190.850.620.730.160.930.630.420.85-0.4-0.60.230.08
-0.05-0.27-0.18-0.030.19-0.27-0.380.360.2-0.070.060.2-0.19-0.10.270.010.28-0.08-0.020.0-0.120.5-0.460.310.08
0.840.930.640.80.480.730.80.530.310.810.710.310.85-0.10.50.59-0.160.980.770.50.76-0.32-0.750.610.04
0.610.550.480.790.730.670.490.860.120.610.810.120.620.270.50.550.050.620.490.450.57-0.19-0.710.10.47
0.570.680.710.790.610.780.680.52-0.010.550.59-0.010.730.010.590.550.350.680.50.320.4-0.13-0.40.14-0.01
0.06-0.040.380.170.410.180.07-0.08-0.250.090.02-0.250.160.28-0.160.050.35-0.05-0.02-0.270.10.090.15-0.32-0.32
0.860.960.710.90.590.840.870.630.230.840.80.230.93-0.080.980.620.68-0.050.760.520.8-0.32-0.760.50.08
0.880.760.690.630.680.520.480.560.680.760.740.680.63-0.020.770.490.5-0.020.760.190.71-0.12-0.650.3-0.07
0.270.47-0.10.510.110.420.440.440.040.290.410.040.420.00.50.450.32-0.270.520.190.240.06-0.450.3-0.01
0.920.770.760.770.760.720.760.510.090.950.820.090.85-0.120.760.570.40.10.80.710.24-0.31-0.660.250.15
-0.19-0.43-0.41-0.290.03-0.42-0.510.130.15-0.21-0.060.15-0.40.5-0.32-0.19-0.130.09-0.32-0.120.06-0.31-0.060.080.01
-0.74-0.61-0.4-0.67-0.62-0.46-0.45-0.81-0.36-0.73-0.79-0.36-0.6-0.46-0.75-0.71-0.40.15-0.76-0.65-0.45-0.66-0.06-0.61-0.29
0.360.30.050.18-0.060.050.20.170.220.350.140.220.230.310.610.10.14-0.320.50.30.30.250.08-0.610.2
0.12-0.050.050.150.180.140.050.41-0.210.20.29-0.210.080.080.040.47-0.01-0.320.08-0.07-0.010.150.01-0.290.2
Click cells to compare fundamentals

Northrop Grumman Account Relationship Matchups

Northrop Grumman fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets41.1B44.5B42.6B43.8B46.5B24.1B
Short Long Term Debt Total14.1B16.3B14.4B14.7B15.7B16.5B
Other Current Liab3.1B4.5B4.3B4.3B3.4B2.7B
Total Current Liabilities9.4B9.6B9.5B11.6B11.9B12.5B
Total Stockholder Equity8.8B10.6B12.9B15.3B14.8B8.4B
Property Plant And Equipment Net8.4B8.6B9.5B10.6B11.5B12.0B
Net Debt11.8B11.4B10.8B12.1B12.6B13.2B
Retained Earnings8.7B10.5B12.9B15.3B14.8B15.5B
Cash2.2B4.9B3.5B2.6B3.1B1.9B
Non Current Assets Total30.4B29.1B30.2B31.3B32.8B16.9B
Non Currrent Assets Other1.4B1.5B1.9B2.3B2.2B1.6B
Cash And Short Term Investments2.2B4.9B3.5B2.6B3.1B1.9B
Net Receivables6.7B6.6B7.0B7.5B7.1B7.5B
Common Stock Shares Outstanding170M167.6M160.9M155.6M152M210.0M
Liabilities And Stockholders Equity41.1B44.5B42.6B43.8B46.5B24.1B
Non Current Liabilities Total22.8B24.3B20.1B16.9B19.8B20.8B
Inventory783M759M811M978M1.1B969.9M
Other Current Assets997M3.0B1.1B1.4B2.3B2.5B
Other Stockholder Equity(97M)58M(143M)(153M)(137.7M)(130.8M)
Total Liab32.3B33.9B29.7B28.4B31.7B33.3B
Total Current Assets10.7B15.3B12.4B12.5B13.7B7.2B
Short Term Debt1.9B742M6M1.1B2.3B2.4B
Accounts Payable2.2B1.8B2.2B2.6B2.1B1.4B
Intangible Assets1.0B783M578M384M305M289.8M
Accumulated Other Comprehensive Income(52M)(97M)(128M)(143M)(153M)(134.4M)
Common Stock168M167M156M153M150M142.5M
Other Liab8.8B8.7B5.8B3.2B3.7B6.2B
Other Assets1.9B1.8B2.5B2.4B2.2B2.0B
Long Term Debt12.8B14.3B12.8B11.8B13.8B8.2B
Good Will18.7B17.5B17.5B17.5B17.5B15.0B
Property Plant Equipment6.9B7.1B7.9B8.8B10.1B10.6B
Current Deferred Revenue2.2B2.5B3.0B3.6B4.2B4.4B
Common Stock Total Equity168M167M156M153M137.7M130.8M
Property Plant And Equipment Gross8.4B8.6B16.4B17.9B19.4B20.4B
Net Tangible Assets(10.9B)(7.7B)12.3B(2.6B)(2.3B)(2.4B)
Retained Earnings Total Equity8.7B10.5B12.9B15.3B17.6B10.8B
Long Term Debt Total12.8B14.3B12.8B11.8B13.6B9.9B
Deferred Long Term Liab317M319M490M132M151.8M117.6M
Non Current Liabilities Other10.1B10.0B6.9B4.9B2.8B2.7B

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When determining whether Northrop Grumman offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Northrop Grumman's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Northrop Grumman Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Northrop Grumman Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Northrop Grumman. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons.
For information on how to trade Northrop Stock refer to our How to Trade Northrop Stock guide.
You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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Is Northrop Grumman's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northrop Grumman. If investors know Northrop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northrop Grumman listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.049
Dividend Share
7.34
Earnings Share
13.53
Revenue Per Share
259.34
Quarterly Revenue Growth
0.06
The market value of Northrop Grumman is measured differently than its book value, which is the value of Northrop that is recorded on the company's balance sheet. Investors also form their own opinion of Northrop Grumman's value that differs from its market value or its book value, called intrinsic value, which is Northrop Grumman's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northrop Grumman's market value can be influenced by many factors that don't directly affect Northrop Grumman's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Northrop Grumman's value and its price as these two are different measures arrived at by different means. Investors typically determine if Northrop Grumman is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northrop Grumman's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.