Northrop Grumman Corp (NOC) has reported 16.67 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $602 million, or $3.35 a share in the quarter, compared with $516 million, or $2.75 a share for the same period last year. Revenue during the quarter went up marginally by 2.94 percent to $6,155 million from $5,979 million in the previous year period. Gross margin for the quarter contracted 19 basis points over the previous year period to 24.18 percent. Total expenses were 86.58 percent of quarterly revenues, down from 86.72 percent for the same period last year. This has led to an improvement of 14 basis points in operating margin to 13.42 percent.
Operating income for the quarter was $826 million, compared with $794 million in the previous year period.
"Our third quarter results demonstrate that we continue to build a strong foundation for profitable growth over the long term. Congratulations to our entire team for another solid quarter," said Wes Bush, chairman, chief executive officer and president.
Operating cash flow improves significantlyNorthrop Grumman Corp has generated cash of $1,282 million from operating activities during the nine month period, up 142.34 percent or $753 million, when compared with the last year period. The company has spent $605 million cash to meet investing activities during the nine month period as against cash outgo of $298 million in the last year period.
The company has spent $1,893 million cash to carry out financing activities during the nine month period as against cash outgo of $2,802 million in the last year period.
Cash and cash equivalents stood at $1,103 million as on Sep. 30, 2016, down 14.63 percent or $189 million from $1,292 million on Sep. 30, 2015.
Working capital declines
Northrop Grumman Corp has witnessed a decline in the working capital over the last year. It stood at $665 million as at Sep. 30, 2016, down 18.70 percent or $153 million from $818 million on Sep. 30, 2015. Current ratio was at 1.13 as on Sep. 30, 2016, down from 1.16 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 42 days for the last year period. Days sales outstanding went down to 27 days for the quarter compared with 49 days for the same period last year.
Days inventory outstanding has decreased to 8 days for the quarter compared with 17 days for the previous year period. At the same time, days payable outstanding went down to 13 days for the quarter from 25 for the same period last year.
Debt remains almost stable
Total debt of Northrop Grumman Corp remained almost stable for the quarter at $6,387 million, when compared with the last year period. Long-term debt of Northrop Grumman Corp remained almost stable for the quarter at $6,387 million, when compared with the last year period. Total debt was 26.50 percent of total assets as on Sep. 30, 2016, compared with 26.78 percent on Sep. 30, 2015. Debt to equity ratio was at 1.11 as on Sep. 30, 2016, down from 1.13 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
