Lockheed Martin Corporation (LMT)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 64,026,000 | 62,673,000 | 62,516,000 | 61,214,000 | 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 |
| Inventory | US$ in thousands | 3,474,000 | 3,234,000 | 3,097,000 | 3,278,000 | 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 |
| Inventory turnover | 18.43 | 19.38 | 20.19 | 18.67 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $64,026,000K ÷ $3,474,000K
= 18.43
Lockheed Martin Corporation's inventory turnover ratio indicates the number of times the company sells and replaces its inventory within a specific period. The trend in the inventory turnover ratio from March 31, 2020, to December 31, 2024, shows fluctuations in the efficiency of managing inventory.
The inventory turnover ratio increased steadily from 14.94 on March 31, 2020, to a peak of 20.19 on June 30, 2024. This indicates that Lockheed Martin improved its inventory management efficiency, as it was able to sell and replace inventory more frequently during this period.
However, there were fluctuations in the inventory turnover ratio throughout the analyzed period, with some quarters showing a decline in efficiency. For example, the inventory turnover ratio decreased from 19.81 on September 30, 2021, to 16.20 on June 30, 2022. This decline may suggest inventory management challenges or changes in demand for Lockheed Martin's products during that period.
Overall, despite some fluctuations, Lockheed Martin Corporation maintained a relatively healthy inventory turnover ratio throughout the analyzed period, which suggests effective inventory management practices. It is important for the company to continue monitoring and optimizing its inventory turnover to ensure efficient operations and maximize profitability.
See also:
Lockheed Martin Corporation Inventory Turnover (Quarterly Data)