Lockheed Martin Corporation (LMT)

Days of sales outstanding (DSO)

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Receivables turnover 31.69 28.14 19.67 25.61 26.34 26.06 18.87 26.02 34.15 29.27 25.59 29.81 33.06 25.90 22.19 21.14 25.59 24.47 22.58 19.93
DSO days 11.52 12.97 18.56 14.25 13.86 14.01 19.35 14.03 10.69 12.47 14.26 12.24 11.04 14.09 16.45 17.27 14.26 14.91 16.16 18.31

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 31.69
= 11.52

To analyze Lockheed Martin Corp.'s days of sales outstanding (DSO), we can observe the trend in the DSO over the past few quarters.

The DSO measures how long it takes for a company to collect payment after making a sale. A lower DSO is generally favorable as it indicates that the company is collecting payments more quickly.

Looking at the data, we can see fluctuations in DSO over the past eight quarters. In the most recent quarter, ending December 31, 2023, the DSO was 11.52 days, which was an improvement from the previous quarter's DSO of 12.97 days. This suggests that the company was able to collect payments more efficiently in the most recent quarter.

However, it is important to note that DSO can be influenced by various factors such as sales volume, industry seasonality, and credit policies. Therefore, it is essential to consider these factors when interpreting the DSO.

In conclusion, while the most recent DSO for Lockheed Martin Corp. showed improvement, it is crucial to monitor the trend over multiple quarters and consider other related financial metrics to gain a comprehensive understanding of the company's accounts receivable management.

See also:

Lockheed Martin Corporation Average Receivable Collection Period (Quarterly Data)