Lockheed Martin Corporation (LMT)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 59,092,000 | 57,697,000 | 57,983,000 | 56,744,000 | 51,445,000 |
| Inventory | US$ in thousands | 3,132,000 | 3,088,000 | 2,981,000 | 3,545,000 | 3,619,000 |
| Inventory turnover | 18.87 | 18.68 | 19.45 | 16.01 | 14.22 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $59,092,000K ÷ $3,132,000K
= 18.87
The inventory turnover for Lockheed Martin Corp. has shown a generally increasing trend over the past five years. In 2023, the inventory turnover stood at 18.84, which represents the number of times the company's inventory was sold and replaced during the year. This indicates that the company's inventory management has improved over the years, as the efficiency of inventory turnover has been increasing. A higher inventory turnover implies that the company is selling its products more frequently, which can lead to lower carrying costs and potentially higher profitability. This trend suggests that the company has been effectively managing its inventory levels and efficiently converting its inventory into sales.