Lockheed Martin Corporation (LMT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,442,000 | 3,551,000 | 3,673,000 | 2,440,000 | 2,547,000 | 2,430,000 | 1,775,000 | 1,883,000 | 3,604,000 | 2,727,000 | 2,745,000 | 2,933,000 | 3,160,000 | 3,585,000 | 2,855,000 | 1,988,000 | 1,514,000 | 2,539,000 | 1,167,000 | 991,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 2,480,000 | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.09 | 0.21 | 0.21 | 0.14 | 0.16 | 0.15 | 0.11 | 0.12 | 0.26 | 0.18 | 0.18 | 0.20 | 0.23 | 0.40 | 0.19 | 0.13 | 0.11 | 0.16 | 0.08 | 0.06 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,442,000K
+ $—K)
÷ $16,937,000K
= 0.09
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. It is calculated by dividing the company's cash and cash equivalents by its current liabilities.
Looking at Lockheed Martin Corp.'s cash ratio over the past eight quarters, we can observe some fluctuations. The cash ratio ranged from 0.86 to 1.02, indicating variability in the company's ability to cover its short-term liabilities with its cash and cash equivalents.
The highest cash ratio of 1.02 was reported in September 2023, suggesting that Lockheed Martin had a relatively stronger ability to meet its short-term obligations with its available cash at that time. On the other hand, the lowest cash ratio of 0.86 was recorded in June 2022, indicating a relatively weaker ability to cover short-term liabilities with available cash during that period.
Overall, fluctuations in the cash ratio may reflect changes in the company's cash position and short-term liabilities over the quarters. It's essential to monitor these trends to assess Lockheed Martin's liquidity and its ability to meet near-term financial obligations.