Lockheed Martin Corporation (LMT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 64,113,000 | 59,092,000 | 57,697,000 | 57,983,000 | 56,744,000 |
| Inventory | US$ in thousands | 3,474,000 | 3,132,000 | 3,088,000 | 2,981,000 | 3,545,000 |
| Inventory turnover | 18.46 | 18.87 | 18.68 | 19.45 | 16.01 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $64,113,000K ÷ $3,474,000K
= 18.46
Lockheed Martin Corporation's inventory turnover has shown a positive trend over the past five years. The inventory turnover ratio increased from 16.01 in 2020 to 19.45 in 2021, indicating that the company's inventory was sold and replenished 19.45 times during the year. The ratio remained relatively stable in subsequent years, ranging between 18.46 to 18.87.
A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory by quickly selling and replacing goods. This can be seen as a positive sign, as it suggests that Lockheed Martin Corporation is effectively controlling its inventory levels and minimizing carrying costs. Overall, the trend in inventory turnover reflects positively on the company's operational efficiency and management of inventory.