Lockheed Martin Corporation (LMT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 67,571,000 | 65,984,000 | 67,044,000 | 65,398,000 | 59,812,000 |
| Receivables | US$ in thousands | 2,132,000 | 2,505,000 | 1,963,000 | 1,978,000 | 2,337,000 |
| Receivables turnover | 31.69 | 26.34 | 34.15 | 33.06 | 25.59 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $67,571,000K ÷ $2,132,000K
= 31.69
Lockheed Martin Corp.'s receivables turnover ratio provides insight into the efficiency of the company's collections from customers. The trend indicates an improvement in receivables turnover over the last five years, signifying that the company has been more effective in converting its accounts receivables into cash. This improvement suggests that Lockheed Martin Corp. has been managing its credit policies and collection efforts well. The higher turnover ratio in 2021 and 2023 indicates that the company has been collecting its receivables more frequently compared to the previous years. This could be attributed to improved credit management, better customer payment behavior, or more effective collection processes. Overall, the increasing trend in the receivables turnover ratio demonstrates the company's ability to efficiently manage its accounts receivables, which is a positive indicator for its financial health.