Lockheed Martin Corporation (LMT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 67,571,000 | 65,984,000 | 67,044,000 | 65,398,000 | 59,812,000 |
| Property, plant and equipment | US$ in thousands | 8,370,000 | 7,975,000 | 7,597,000 | 7,213,000 | 6,591,000 |
| Fixed asset turnover | 8.07 | 8.27 | 8.83 | 9.07 | 9.07 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $67,571,000K ÷ $8,370,000K
= 8.07
The fixed asset turnover ratio of Lockheed Martin Corp. has exhibited a consistent decline over the past five years, decreasing from 9.07 in 2019 to 8.07 in 2023. This indicates that the company's efficiency in generating sales from its fixed assets has diminished. A lower fixed asset turnover ratio can suggest underutilization of fixed assets or decreased sales relative to the book value of fixed assets. Further analysis of the company's investment in fixed assets and its revenue generation capabilities would be beneficial to understand the underlying factors contributing to this trend.