Lockheed Martin Corporation (LMT)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	18.46	18.87	18.68	19.45	16.01
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	29.25	18.85	12.93	11.52	12.01

Lockheed Martin Corporation's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory Turnover: The company's inventory turnover has shown a consistent improvement over the years, indicating that Lockheed Martin is selling its inventory at a faster rate. In 2024, the inventory turnover ratio stands at 18.46, suggesting that the company is effectively managing its inventory levels.

2. Receivables Turnover: The data provided does not include information on receivables turnover, making it challenging to assess how quickly Lockheed Martin collects payments from its customers. A higher receivables turnover ratio would indicate that the company efficiently collects outstanding receivables.

3. Payables Turnover: Similar to receivables turnover, no data is available for payables turnover. A higher payables turnover would suggest that Lockheed Martin efficiently manages its payments to suppliers.

4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales. Lockheed Martin's working capital turnover has shown an increasing trend over the years, reaching 29.25 in 2024. This indicates that the company is using its working capital more efficiently to support business operations and drive revenue growth.

Overall, the analysis of Lockheed Martin Corporation's activity ratios highlights improvements in inventory turnover and working capital turnover, suggesting effective management of assets and operations. However, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's overall working capital management.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	19.78	19.35	19.54	18.77	22.80
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Lockheed Martin Corporation's Days of Inventory on Hand (DOH) decreased from 22.80 days as of December 31, 2020, to 18.77 days as of December 31, 2021. This suggests that the company has been able to manage its inventory more efficiently over the year. However, there was a slight increase in DOH to 19.54 days by December 31, 2022, followed by a further decrease to 19.35 days by December 31, 2023, and then a slight increase to 19.78 days as of December 31, 2024.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis. Typically, lower DSO indicates that the company is collecting receivables faster, while a higher number of days of payables may suggest that the company is taking longer to pay its suppliers, potentially benefiting cash flow.

In summary, although the management of inventory has shown fluctuations, a consistent improvement or stability in inventory management efficiency would positively impact Lockheed Martin Corporation's working capital and overall financial performance.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	8.27	8.83	9.07
Total asset turnover	1.28	1.29	1.25	1.32	1.29

Lockheed Martin Corporation's long-term activity ratios provide insight into how efficiently the company is utilizing its fixed assets and total assets to generate revenue.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how well the company is using its fixed assets to generate sales.
- Lockheed Martin's fixed asset turnover has shown a slight decline over the years, from 9.07 in 2020 to 8.27 in 2022.
- A high fixed asset turnover ratio suggests that the company is efficiently using its fixed assets to generate revenue.

2. Total Asset Turnover:
- The total asset turnover ratio measures the efficiency of the company in generating revenue from all its assets.
- Lockheed Martin's total asset turnover has remained relatively stable, with minor fluctuations from 1.29 in 2020 to 1.28 in 2024.
- A stable or increasing total asset turnover ratio indicates that the company is effectively using its total assets to generate revenue.

Overall, the analysis of Lockheed Martin Corporation's long-term activity ratios shows that while there has been a slight decline in fixed asset turnover, the total asset turnover has remained relatively stable. It suggests that the company is efficiently utilizing its assets to generate revenue, even though there may be room for improvement in the utilization of fixed assets.