Lockheed Martin Corporation (LMT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.21 | 1.32 | 1.42 | 1.39 | 1.22 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $20,521,000K ÷ $16,937,000K
= 1.21
The current ratio of Lockheed Martin Corp. has exhibited some fluctuations over the past five years. The current ratio measures the company's ability to meet its short-term obligations using its current assets. A current ratio of 1.21 in 2023 indicates that Lockheed Martin Corp. had $1.21 in current assets for every $1 of current liabilities.
Despite the variability, the company has generally maintained a current ratio above 1, which implies that it has had sufficient current assets to cover its short-term liabilities. The slight decrease in the current ratio from 2022 to 2023 may indicate a reduction in liquidity or an increase in short-term obligations. Overall, the current ratio trend suggests that Lockheed Martin Corp. has managed its short-term liquidity well, but it is important to monitor future changes to ensure it continues to meet its short-term obligations effectively.