Northrop Grumman Corp (NOC) |
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Northrop Grumman's Customers Performance
NOC
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NOC's Source of Revenues |
Northrop Grumman's Customers have recorded an advance in their cost of revenue by 8.89 % in the 4 quarter 2020 year on year, sequentially costs of revenue grew by 24.34 %, for the same period Northrop Grumman Corp recorded revenue increase by 17.1 % year on year, sequentially revenue grew by 12.43 %.
• List of NOC Customers
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Northrop Grumman's Customers have recorded an advance in their cost of revenue by 8.89 % in the 4 quarter 2020 year on year, sequentially costs of revenue grew by 24.34 %, for the same period Northrop Grumman Corp recorded revenue increase by 17.1 % year on year, sequentially revenue grew by 12.43 %.
• List of NOC Customers
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Customers recorded net loss in Q4 |
Customers recorded net loss |
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Northrop Grumman's Comment on Sales, Marketing and Customers
Our primary customer is the U.S. Government. Revenue from the U.S. Government
(which excludes foreign military sales - a method to sell U.S. defense equipment
and services to foreign governments through the DoD) accounted for 86 percent
or more of total revenues. International sales (which include foreign military
sales) accounted for 10 percent, of total revenue. No single program accounted
for more than ten percent of total revenue.
We generate the majority of our business from long-term contracts with the
U.S. Government for development, production, and support activities. Due to
the long-term nature of our contracts with the U.S. Government and the products
and services covered by these contracts, we generally recognize revenue using
the percentage of completion method of accounting. Under the percentage of completion
method of accounting, revenues are generally recognized as costs are incurred
(cost-to-cost method) or as units are delivered (units-of-delivery method).
Unless otherwise specified in a contract, allowable and allocable costs are
billed to contracts with the U.S. Government under the requirements of the Federal
Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) regulations.
Examples of costs incurred by us and not billed to the U.S. Government in accordance
with the requirements of the FAR and CAS regulations include, but are not limited
to, lobbying costs, certain legal costs, charitable donations, advertising costs
and interest expense. Our long-term contracts typically fall into one of two
broad categories:
Cost-type contracts – Cost-type contracts include cost plus fixed fee,
award fee, and incentive fee contracts. Cost-type contracts provide for reimbursement
of the contractor’s allowable costs incurred plus a fee. Cost-type contracts
generally require that the contractor use its best efforts to accomplish the
scope of the work within some specified time and some stated dollar limitation.
Fees on cost-type contracts can be fixed in terms of dollar value or percentage
of costs. Award and incentive fees are based on performance criteria such as
cost, schedule, quality, and technical performance. Award fees are determined
and earned based on customer evaluation of the company's performance against
negotiated criteria, and are intended to provide motivation for excellence in
contract performance. Incentive fees that are based on cost provide for an initially
negotiated fee to be adjusted later, typically using a formula to measure performance
against the associated criteria, based on the relationship of total allowable
costs to total target costs. Award and incentive fees that can reasonably be
estimated and are deemed reasonably assured are recorded over the performance
period of the contract.
Fixed-price contracts – A firm fixed-price contract is a contract in
which the specified scope of work is agreed to for a price that is a pre-determined,
negotiated amount and not generally subject to adjustment regardless of costs
incurred by the contractor, absent changes in scope by the customer. Certain
fixed-price incentive fee contracts provide for reimbursement of the contractor’s
allowable costs plus a fee up to a ceiling amount, typically through a cost-sharing
limit that affects profitability. These types of fixed-price incentive fee contracts
effectively become firm fixed-price contracts once the cost-share limit is reached.
Time-and-materials contracts are considered fixed-price contracts as they specify
a fixed hourly rate for each labor hour charged.
Northrop Grumman's Comment on Sales, Marketing and Customers
Our primary customer is the U.S. Government. Revenue from the U.S. Government
(which excludes foreign military sales - a method to sell U.S. defense equipment
and services to foreign governments through the DoD) accounted for 86 percent
or more of total revenues. International sales (which include foreign military
sales) accounted for 10 percent, of total revenue. No single program accounted
for more than ten percent of total revenue.
We generate the majority of our business from long-term contracts with the
U.S. Government for development, production, and support activities. Due to
the long-term nature of our contracts with the U.S. Government and the products
and services covered by these contracts, we generally recognize revenue using
the percentage of completion method of accounting. Under the percentage of completion
method of accounting, revenues are generally recognized as costs are incurred
(cost-to-cost method) or as units are delivered (units-of-delivery method).
Unless otherwise specified in a contract, allowable and allocable costs are
billed to contracts with the U.S. Government under the requirements of the Federal
Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) regulations.
Examples of costs incurred by us and not billed to the U.S. Government in accordance
with the requirements of the FAR and CAS regulations include, but are not limited
to, lobbying costs, certain legal costs, charitable donations, advertising costs
and interest expense. Our long-term contracts typically fall into one of two
broad categories:
Cost-type contracts – Cost-type contracts include cost plus fixed fee,
award fee, and incentive fee contracts. Cost-type contracts provide for reimbursement
of the contractor’s allowable costs incurred plus a fee. Cost-type contracts
generally require that the contractor use its best efforts to accomplish the
scope of the work within some specified time and some stated dollar limitation.
Fees on cost-type contracts can be fixed in terms of dollar value or percentage
of costs. Award and incentive fees are based on performance criteria such as
cost, schedule, quality, and technical performance. Award fees are determined
and earned based on customer evaluation of the company's performance against
negotiated criteria, and are intended to provide motivation for excellence in
contract performance. Incentive fees that are based on cost provide for an initially
negotiated fee to be adjusted later, typically using a formula to measure performance
against the associated criteria, based on the relationship of total allowable
costs to total target costs. Award and incentive fees that can reasonably be
estimated and are deemed reasonably assured are recorded over the performance
period of the contract.
Fixed-price contracts – A firm fixed-price contract is a contract in
which the specified scope of work is agreed to for a price that is a pre-determined,
negotiated amount and not generally subject to adjustment regardless of costs
incurred by the contractor, absent changes in scope by the customer. Certain
fixed-price incentive fee contracts provide for reimbursement of the contractor’s
allowable costs plus a fee up to a ceiling amount, typically through a cost-sharing
limit that affects profitability. These types of fixed-price incentive fee contracts
effectively become firm fixed-price contracts once the cost-share limit is reached.
Time-and-materials contracts are considered fixed-price contracts as they specify
a fixed hourly rate for each labor hour charged.
NOC's vs. Customers, Data
(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)
COMPANY NAME |
MARKET CAP |
REVENUES |
INCOME |
EMPLOYEES |
Northrop Grumman Corp |
50,510 |
36,799 |
3,189 |
64,300 |
Ball Corp |
28,859 |
11,781 |
582 |
15,000 |
Boeing Co |
131,799 |
58,158 |
-11,941 |
168,400 |
Crane Co |
5,133 |
2,937 |
181 |
0 |
General Dynamics Corporation |
48,203 |
37,925 |
3,167 |
99,500 |
Honeywell International Inc |
150,741 |
32,637 |
4,865 |
131,000 |
Itt Inc |
7,327 |
2,478 |
74 |
9,400 |
L3 Technologies, Inc. |
19,614 |
10,573 |
1,041 |
48,000 |
Lockheed Martin Corporation |
97,334 |
65,398 |
6,833 |
113,000 |
Raytheon Company |
32,665 |
29,176 |
3,329 |
61,000 |
Rockwell Collins Inc |
23,427 |
8,665 |
1,032 |
19,500 |
Textron Inc |
12,253 |
12,427 |
-685 |
34,000 |
Raytheon Technologies Corporation |
119,949 |
63,437 |
-3,295 |
0 |
Flir Systems Inc |
7,204 |
1,888 |
139 |
2,741 |
The Manitowoc Company inc |
588 |
1,443 |
-19 |
12,300 |
Eaton Corporation Plc |
53,244 |
18,228 |
1,415 |
102,000 |
SAIC, Inc. |
0 |
0 |
0 |
0 |
Science applications International corporation |
5,365 |
6,879 |
210 |
13,000 |
Leidos Holdings Inc |
12,997 |
12,297 |
629 |
19,000 |
Huntington Ingalls Industries Inc |
7,599 |
9,361 |
696 |
38,000 |
Aar Corp |
1,477 |
1,931 |
-15 |
4,850 |
Air Industries Group |
104 |
49 |
-2 |
379 |
Astronics Corporation |
543 |
586 |
-130 |
2,000 |
Aerovironment Inc |
2,832 |
368 |
34 |
663 |
Cpi Aerostructures Inc |
56 |
85 |
-4 |
281 |
Lmi Aerospace Inc |
185 |
340 |
-42 |
1,970 |
Erickson Inc. |
0 |
0 |
0 |
1,000 |
Elbit Systems Ltd |
5,994 |
4,508 |
229 |
11,851 |
Kratos Defense and Security Solutions inc |
3,800 |
726 |
4 |
3,600 |
Ducommun Incorporated |
702 |
629 |
29 |
3,150 |
Orbital Atk, Inc. |
7,801 |
4,991 |
345 |
12,300 |
Orbit International Corp |
0 |
0 |
0 |
122 |
Passur Aerospace Inc |
5 |
12 |
-12 |
37 |
Sifco Industries Inc |
55 |
112 |
14 |
465 |
Trans-pacific Aerospace Company, Inc. |
0 |
0 |
-2 |
7 |
Exactus Inc |
10 |
2 |
-11 |
0 |
Arotech Corp |
80 |
91 |
-1 |
523 |
Oshkosh Corporation |
7,772 |
6,738 |
318 |
13,300 |
Be Aerospace Inc |
6,705 |
3,484 |
366 |
10,057 |
Cyalume Technologies Holdings, Inc. |
24 |
43 |
2 |
462 |
Richardson Electronics Ltd |
85 |
157 |
-2 |
373 |
Aerojet Rocketdyne Holdings Inc |
4,162 |
2,073 |
138 |
4,965 |
Raven Industries Inc |
1,512 |
354 |
21 |
941 |
Uas Drone Corp |
22 |
0 |
1 |
0 |
American Superconductor Corp |
645 |
81 |
-24 |
354 |
Rada Electronic Industries Ltd |
546 |
44 |
-2 |
93 |
Shotspotter Inc |
540 |
44 |
3 |
85 |
Iec Electronics Corp |
137 |
185 |
7 |
565 |
Osi Systems Inc |
1,752 |
1,101 |
63 |
0 |
Plexus Corp |
2,510 |
3,368 |
123 |
16,000 |
Smtc Corporation |
174 |
375 |
4 |
1,171 |
Sparton Corp. |
182 |
379 |
-8 |
1,531 |
Viavi Solutions Inc |
3,915 |
1,107 |
34 |
3,500 |
Comtech Telecommunications Corp |
725 |
617 |
7 |
1,852 |
Gilat Satellite Networks Ltd |
831 |
263 |
37 |
1,041 |
Iteris inc |
242 |
116 |
11 |
0 |
Kvh Industries Inc |
250 |
154 |
-14 |
604 |
Superconductor Technologies Inc |
6 |
1 |
-4 |
22 |
Dish Network Corporation |
18,510 |
15,493 |
1,874 |
0 |
Technical Communications Corp |
6 |
4 |
-1 |
23 |
Vocera Communications Inc |
0 |
191 |
-11 |
590 |
Viasat Inc |
3,772 |
2,252 |
8 |
5,200 |
Loral Space and Communications Inc |
1,465 |
0 |
10 |
21 |
SUBTOTAL |
844,437 |
438,746 |
11,648 |
991,789 |
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