Lockheed Martin Corporation (LMT)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	31.69	28.14	19.67	25.61	26.34	26.06	18.87	26.02	34.15	29.27	25.59	29.81	33.06	25.90	22.19	21.14	25.59	24.47	22.58	19.93
Payables turnover	25.56	15.51	16.97	17.65	27.25	21.48	24.07	21.92	74.34	37.82	36.15	30.31	64.48	37.34	37.46	16.70	40.16	17.27	18.94	15.71
Working capital turnover	18.85	11.04	10.56	12.81	12.93	14.03	14.28	15.14	11.52	10.48	12.30	11.93	12.01	12.62	13.44	17.12	19.15	13.61	19.37	21.49

Lockheed Martin Corp.'s activity ratios provide insight into how efficiently the company manages its assets and liabilities to generate sales.

The inventory turnover ratio indicates that the company is effectively managing its inventory, with a consistently high turnover rate, ranging from 16.20 to 18.84 times during the observed period. This suggests that Lockheed Martin is efficiently selling and replacing its inventory, potentially reducing the risk of obsolete stock or inventory carrying costs.

The receivables turnover ratio reflects the company's ability to collect outstanding receivables. The ratios have fluctuated, with a significant increase to 31.69 in the most recent period, which may indicate improvements in Lockheed Martin's credit and collection policies.

In contrast, the payables turnover ratio depicts how quickly the company pays its suppliers. The latest ratio of 25.52 indicates an increase in the speed of paying its payables, suggesting a potential improvement in the company's payment management and potentially strengthening its relationship with suppliers.

The working capital turnover ratio measures the efficiency of the company's use of working capital to generate sales. Lockheed Martin's turnover ratio has fluctuated, ranging from 10.56 to 18.85 during the observed period. A higher turnover rate indicates efficient use of working capital.

Overall, the activity ratios demonstrate that Lockheed Martin Corp. has effectively managed its inventory, receivables, payables, and working capital during the observed period, potentially leading to improved cash flow and operational efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	19.35	20.42	21.70	21.95	19.54	20.18	22.53	20.14	18.77	18.43	19.59	20.76	22.80	21.59	23.61	24.44	25.68	25.28	26.57	24.64
Days of sales outstanding (DSO)	days	11.52	12.97	18.56	14.25	13.86	14.01	19.35	14.03	10.69	12.47	14.26	12.24	11.04	14.09	16.45	17.27	14.26	14.91	16.16	18.31
Number of days of payables	days	14.28	23.53	21.50	20.68	13.39	16.99	15.16	16.65	4.91	9.65	10.10	12.04	5.66	9.77	9.74	21.86	9.09	21.13	19.27	23.23

Days of inventory on hand (DOH) measures the number of days it takes for a company to sell its average inventory. For Lockheed Martin Corp., the DOH has been somewhat consistent over the past eight quarters, ranging between 19.38 and 22.53 days. This indicates that the company has been effectively managing its inventory levels.

Days of sales outstanding (DSO) represents the average number of days it takes for a company to collect payment after a sale has been made. Lockheed Martin Corp.'s DSO has fluctuated over the quarters, with a range between 11.52 and 18.56 days. This suggests some variability in the company's collection of receivables, possibly influenced by project milestones and contract terms.

The number of days of payables indicates the average number of days it takes for a company to pay its suppliers. Lockheed Martin Corp.'s payables period has shown some variability, with a range between 13.42 and 23.57 days over the past eight quarters. This suggests some fluctuation in the company's payment practices, which may be influenced by factors such as negotiation with suppliers or changes in working capital management.

Overall, these activity ratios reflect Lockheed Martin Corp.'s management of inventory, collection of receivables, and payment to suppliers, providing insights into the efficiency of the company's operational processes.

Long-term

	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
Fixed asset turnover	8.07	8.41	8.46	8.33	8.27	8.48	8.48	8.70	8.83	9.05	9.17	9.15	9.07	9.44	9.44	9.25	9.07	9.35	9.32	9.20
Total asset turnover	1.29	1.19	1.18	1.21	1.25	1.24	1.24	1.28	1.32	1.28	1.28	1.28	1.29	1.27	1.27	1.24	1.26	1.18	1.20	1.18

The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate revenue. Lockheed Martin Corp.'s fixed asset turnover ratio has remained relatively stable over the past eight quarters, ranging from 8.07 to 8.70. This indicates that the company is consistently generating significant revenue relative to its investment in fixed assets.

The total asset turnover ratio assesses the company's ability to generate sales in relation to its total assets. Lockheed Martin Corp.'s total asset turnover ratio has also shown stability, fluctuating between 1.18 and 1.29 over the same period. This suggests that the company is efficiently utilizing its total assets to generate sales, albeit with some fluctuations.

Overall, based on the stability and high values of both the fixed asset turnover and total asset turnover ratios, Lockheed Martin Corp. appears to be effectively utilizing its assets to drive revenue and maintain a strong level of efficiency in its long-term asset management.