Lockheed Martin Corporation (LMT)
Cash conversion cycle
| 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.80 + — – —
= 19.80
The cash conversion cycle of Lockheed Martin Corporation has shown a declining trend from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and generate cash flow.
Lockheed Martin's cash conversion cycle decreased from 24.44 days on March 31, 2020, to 18.83 days on September 30, 2024. This suggests that the company has been able to streamline its operations, improve inventory management, and collect cash from customers more quickly.
The decrease in the cash conversion cycle implies that Lockheed Martin has been efficient in managing its working capital, which could lead to improved liquidity and profitability. It indicates that the company is effectively balancing its cash inflows and outflows, reducing the amount of time it takes to convert investments into cash, and enhancing overall financial performance.
Overall, the declining trend in Lockheed Martin's cash conversion cycle is a positive indicator of the company's operational efficiency and effectiveness in managing its cash flow.
See also:
Lockheed Martin Corporation Cash Conversion Cycle (Quarterly Data)