Lockheed Martin Corporation (LMT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,483,000 | 1,442,000 | 2,547,000 | 3,604,000 | 3,160,000 |
| Short-term investments | US$ in thousands | — | 2,413,000 | — | — | — |
| Total current liabilities | US$ in thousands | 19,420,000 | 16,937,000 | 15,887,000 | 13,997,000 | 13,933,000 |
| Cash ratio | 0.13 | 0.23 | 0.16 | 0.26 | 0.23 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,483,000K
+ $—K)
÷ $19,420,000K
= 0.13
The cash ratio of Lockheed Martin Corporation has displayed fluctuations over the past five years. In December 2020, the cash ratio was 0.23, indicating that the company had 23 cents in cash and cash equivalents for every dollar of current liabilities. By December 2021, the ratio had increased slightly to 0.26, which could signify an improvement in the company's liquidity position. However, in December 2022, the cash ratio dropped significantly to 0.16, suggesting a decrease in the company's ability to cover its short-term obligations with cash on hand.
In December 2023, the cash ratio returned to 0.23, aligning more closely with the level observed in 2020. This stability may indicate a successful management of liquidity challenges faced in the previous year. The cash ratio then decreased to 0.13 by December 2024, indicating a significant decline in the company's ability to meet its short-term liabilities with available cash reserves.
Overall, the trend in Lockheed Martin Corporation's cash ratio fluctuates, with periods of improvement and decline. It is crucial for the company to maintain a sufficient level of cash reserves to ensure it can meet its short-term obligations, particularly during times of economic uncertainty or operational challenges. Monitoring and managing the cash ratio effectively will be essential in maintaining the company's financial health and stability.