Lockheed Martin Corporation (LMT)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 59,092,000 | 59,202,000 | 58,835,000 | 57,722,000 | 57,697,000 | 56,315,000 | 55,578,000 | 56,966,000 | 57,983,000 | 57,494,000 | 58,127,000 | 57,256,000 | 56,744,000 | 55,681,000 | 54,430,000 | 52,857,000 | 51,445,000 | 50,159,000 | 49,448,000 | 48,659,000 |
| Inventory | US$ in thousands | 3,132,000 | 3,312,000 | 3,498,000 | 3,471,000 | 3,088,000 | 3,113,000 | 3,431,000 | 3,144,000 | 2,981,000 | 2,903,000 | 3,119,000 | 3,256,000 | 3,545,000 | 3,293,000 | 3,521,000 | 3,539,000 | 3,619,000 | 3,474,000 | 3,599,000 | 3,285,000 |
| Inventory turnover | 18.87 | 17.88 | 16.82 | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | 19.45 | 19.81 | 18.64 | 17.58 | 16.01 | 16.91 | 15.46 | 14.94 | 14.22 | 14.44 | 13.74 | 14.81 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $59,092,000K ÷ $3,132,000K
= 18.87
To analyze Lockheed Martin Corp.'s inventory turnover, we use the formula: Inventory Turnover = Cost of Goods Sold / Average Inventory. The higher the turnover, the more efficiently the company is managing its inventory.
Looking at the data provided, we observe that Lockheed Martin's inventory turnover ratio has been consistently high, ranging from 16.20 to 18.84 over the last eight quarters. This indicates that the company is efficiently managing its inventory, quickly selling and replenishing its stock.
A high inventory turnover could imply effective inventory management, which may lead to lower holding costs and reduced risk of inventory obsolescence. However, it's essential to consider the nature of Lockheed Martin's business and its specific industry norms when interpreting this ratio.
Overall, the trend of high and relatively stable inventory turnover is a positive signal for Lockheed Martin's operational efficiency in managing its inventory.
See also:
Lockheed Martin Corporation Inventory Turnover (Quarterly Data)