Lockheed Martin Corporation (LMT)
Total asset 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 |
| Total assets | US$ in thousands | 52,456,000 | 52,880,000 | 50,873,000 | 50,710,000 | 47,528,000 |
| Total asset turnover | 1.29 | 1.25 | 1.32 | 1.29 | 1.26 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $67,571,000K ÷ $52,456,000K
= 1.29
The total asset turnover of Lockheed Martin Corp. has exhibited some variability over the past five years. The ratio measures the efficiency with which the company utilizes its assets to generate revenue. Generally, a higher total asset turnover indicates better asset utilization.
In 2021, the total asset turnover was 1.32, signifying that the company generated $1.32 in revenue for every dollar of assets. This was a relatively high level of efficiency in asset utilization. However, in 2022, the ratio decreased to 1.25, suggesting a decline in the company's ability to generate revenue from its assets.
The ratio rebounded in 2023, reaching 1.29, which, although not as high as the 2021 level, still indicates improved asset efficiency compared to 2022. Over the five-year period, the total asset turnover has generally remained around the 1.25 to 1.32 range, indicating that Lockheed Martin Corp. has been consistently effective in utilizing its assets to generate revenue.
Overall, while there has been some fluctuation from year to year, the company's total asset turnover demonstrates a strong and consistent level of asset efficiency over the analyzed period.