Lockheed Martin Corporation (LMT)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 67,571,000 | 67,688,000 | 67,393,000 | 66,146,000 | 65,984,000 | 64,722,000 | 64,167,000 | 65,750,000 | 67,044,000 | 66,347,000 | 66,814,000 | 66,005,000 | 65,398,000 | 64,244,000 | 62,920,000 | 61,127,000 | 59,812,000 | 58,345,000 | 57,492,000 | 56,463,000 |
| Total current assets | US$ in thousands | 20,521,000 | 23,322,000 | 24,087,000 | 22,144,000 | 20,991,000 | 20,960,000 | 20,973,000 | 20,390,000 | 19,815,000 | 21,357,000 | 20,674,000 | 20,252,000 | 19,378,000 | 20,290,000 | 19,570,000 | 19,222,000 | 17,095,000 | 19,803,000 | 18,100,000 | 18,031,000 |
| Total current liabilities | US$ in thousands | 16,937,000 | 17,193,000 | 17,704,000 | 16,982,000 | 15,887,000 | 16,347,000 | 16,479,000 | 16,047,000 | 13,997,000 | 15,026,000 | 15,242,000 | 14,717,000 | 13,933,000 | 15,201,000 | 14,888,000 | 15,652,000 | 13,972,000 | 15,515,000 | 15,132,000 | 15,403,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (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. provides insights into the efficiency of the company in utilizing its working capital to generate sales revenue. The trend in the working capital turnover ratio indicates how effectively the company is managing its working capital.
For the period from December 31, 2023, to March 27, 2022, the working capital turnover exhibited fluctuations. The ratio peaked at 18.85 on December 31, 2023, indicating that, during that time, the company generated $18.85 in net sales for every dollar of working capital. This suggests efficient utilization of working capital to drive sales revenue.
However, the ratio declined to 11.04 on September 24, 2023, and continued to fluctuate throughout the analyzed period, reaching its lowest point at 10.56 on June 25, 2023. This decline may indicate potential inefficiencies in the management of working capital during those periods, which could have led to a decrease in sales generated relative to the investment in working capital.
The subsequent increase in the ratio to 15.14 on March 27, 2022, suggests an improvement in the efficiency of working capital utilization and its contribution to generating sales revenue.
Overall, the trend in the working capital turnover ratio for Lockheed Martin Corp. underscores the importance of effectively managing working capital to drive sales and highlights areas where improvements may be needed to optimize the utilization of working capital.
See also:
Lockheed Martin Corporation Working Capital Turnover (Quarterly Data)