Lockheed Martin Corporation (LMT)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 29.25 | 13.20 | 15.88 | 13.24 | 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 |
Lockheed Martin Corporation's inventory turnover has been steadily increasing over the years, indicating an efficient management of inventory. The ratio reached its peak at 20.19 times in June 30, 2024, showing that the company is selling through its inventory relatively quickly.
The receivables turnover and payables turnover ratios are not available in the provided data, so we cannot assess the efficiency of the company in collecting receivables and managing payables.
Regarding the working capital turnover, we see some fluctuation in the ratio over the period, with a notable increase to 29.25 in December 31, 2024. This suggests that Lockheed Martin Corporation is generating more revenue relative to its working capital, which is a positive sign of operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 19.80 | 18.83 | 18.08 | 19.55 | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Lockheed Martin Corporation's Days of Inventory on Hand (DOH) indicates the number of days it takes for the company to sell its inventory. The trend in DOH from March 31, 2020 (24.44 days) to December 31, 2024 (19.80 days) shows a general decrease, suggesting an improvement in inventory management efficiency.
However, data on Days of Sales Outstanding (DSO), which measures the average number of days it takes for a company to collect revenue after a sale, is not available. This could indicate that the company might not have significant accounts receivable balances, or the data might be undisclosed.
Similarly, information on the Number of Days of Payables, which measures how long it takes a company to pay its suppliers, is also not provided. This data is essential for analyzing the company's payment practices and liquidity management. Without this information, it is challenging to assess Lockheed Martin's effectiveness in managing its payables.
In conclusion, while Lockheed Martin appears to be improving its inventory turnover efficiency based on the decreasing trend in DOH, the absence of information on DSO and payables hinders a comprehensive assessment of its overall activity ratios.
See also:
Lockheed Martin Corporation Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 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 |
| Total asset turnover | 1.28 | 1.28 | 1.29 | 1.27 | 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 |
The fixed asset turnover ratio for Lockheed Martin Corporation has been consistently declining from 9.25 in March 2020 to 8.27 in December 2022 before stabilizing around 8.4 in the subsequent periods. This indicates that the company's efficiency in generating sales from its fixed assets has been decreasing over time.
On the other hand, the total asset turnover ratio shows some fluctuation but generally remains stable around 1.3 from December 2020 to December 2023, reflecting the company's ability to generate sales from all its assets. However, there is a slight decline in this ratio towards the end of the period.
In conclusion, while the total asset turnover ratio suggests stable performance in utilizing all assets to generate revenue, the declining trend in the fixed asset turnover ratio indicates a decreasing efficiency in utilizing fixed assets for revenue generation. This may imply a need for Lockheed Martin Corporation to review and optimize its asset management strategies to improve its long-term activity efficiency.
See also:
Lockheed Martin Corporation Long-term (Investment) Activity Ratios (Quarterly Data)