Current Ratio

The current ratio of 1.15x means Northrop Grumman has $1.15 in current assets for every $1 of short-term liabilities, indicating it can cover near-term obligations but with a thinner safety margin than the sector’s median of 1.20x, placing it at the 45th percentile among peers.

The year-over-year change is not available, but the quarter-over-quarter change is +0.9%, reflecting a small improvement from the prior quarter’s 1.14x. Although the ratio sits slightly below the sector median, the upward quarterly trend suggests liquidity is modestly strengthening, which eases some near-term risk. However, at 1.15x the level is still below the industry norm, implying that if cash flows falter, the company could face tighter working capital constraints. This combination of a below-median level with a slight positive trend does not shift the overall risk profile dramatically. The metric supports the NEUTRAL verdict because it neither signals a clear strength nor a red flag, aligning with a balanced assessment of the stock.

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