Lockheed Martin Corporation (LMT)
Working capital 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 current assets | US$ in thousands | 20,521,000 | 20,991,000 | 19,815,000 | 19,378,000 | 17,095,000 |
| Total current liabilities | US$ in thousands | 16,937,000 | 15,887,000 | 13,997,000 | 13,933,000 | 13,972,000 |
| Working capital turnover | 18.85 | 12.93 | 11.52 | 12.01 | 19.15 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $67,571,000K ÷ ($20,521,000K – $16,937,000K)
= 18.85
The working capital turnover of Lockheed Martin Corp. has demonstrated fluctuations over the past five years, indicating variations in the efficiency of its working capital management. The ratio reached its highest point in 2019 at 19.15, indicating that the company generated substantial revenue relative to its working capital. However, it subsequently decreased to 12.01 in 2020 before showing an upward trend in 2021 and 2022, reaching 11.52 and 12.93, respectively. Notably, in 2023, the working capital turnover significantly increased to 18.85, demonstrating an improvement in the company's ability to generate revenue from its working capital. This suggests that Lockheed Martin Corp. has been efficiently utilizing its working capital to support its operations and generate sales. However, further analysis of the financial statements and industry benchmarks may provide greater insight into the underlying factors driving these fluctuations.