PROJECT 3 RATIOS AND CASH FLOW

PROJECT 3 RATIOS AND CASH FLOW - Lockheed Current Ratio...

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Lockheed Northrop Current Ratio Current Assets/Current Liabilities 1.06 0.99 Quick Ratio Quick Assets/Current Liabilities 0.72 0.68 Accounts Receivable Turnover Net Sales/Avg. A/R 8.64 8.47 Inventory Turnover COGS/Avg. Inventory 20.23 21.06 Fixed asset Turnover Net Sales Revenue/Avg. Net Fixed Assets 9.93 6.75 Accounts Payable Turnover COGS/Avg. Accounts Payable 17.1 5 15.06 Debt to Equity Total Liabilities/Total S/E 3.10 0.93 Financial Leverage Avg. Total Assets/Avg. S/E 3.79 1.98 Asset Turnover Net Sales/Avg. Total Assets 1.42 0.91 Return on Equity Net Income/Avg S/E 0.34 0.09 Gross Profit ratio Gross Profit/Net Sales 0.10 0.18 Net Profit Margin Net Income/Net Sales 0.06 0.05 Return on Assets Net Income/Avg. Total Assets 0.09 0.05 When reviewing the direction of cash flow for the Northrop Grumman Corporation it is important to understand that the main source of cash inflows has been through operating activities. For the years of 2004, 2005 and 2006 these numbers have all stayed positive. However, in the year 2006 the Net cash provided by operating activities was the smallest of the
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This note was uploaded on 04/01/2008 for the course ACCT 201 taught by Professor Anothony during the Fall '07 term at Michigan State University.

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