Lockheed Martin Corporation (LMT)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 25.56 | 27.25 | 74.34 | 64.48 | 40.16 | |
| Number of days of payables | days | 14.28 | 13.39 | 4.91 | 5.66 | 9.09 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 25.56
= 14.28
To analyze Lockheed Martin Corp.'s number of days of payables, we observe an increasing trend from 2019 to 2021, followed by a slight decrease in 2022, and an increase again in 2023. This indicates a lengthening of the company's payment period to its suppliers over the years. In 2023, the number of days of payables increased to 14.30 days, signifying that, on average, the company takes approximately 14.30 days to pay its trade payables. This may suggest a potential impact on cash flow management and supplier relationships. Further investigation into the company's payables policies and supplier negotiations would provide more insights into the implications of this trend.