Lockheed Martin Corporation (LMT)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 21,849,000 | 20,521,000 | 20,991,000 | 19,815,000 | 19,378,000 |
| Total current liabilities | US$ in thousands | 19,420,000 | 16,937,000 | 15,887,000 | 13,997,000 | 13,933,000 |
| Current ratio | 1.13 | 1.21 | 1.32 | 1.42 | 1.39 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $21,849,000K ÷ $19,420,000K
= 1.13
The current ratio of Lockheed Martin Corporation has shown a fluctuating trend over the past five years. As of December 31, 2020, the ratio stood at 1.39, indicating that the company had $1.39 in current assets for every $1 in current liabilities. This ratio improved slightly to 1.42 by December 31, 2021, reflecting a stronger liquidity position. However, by December 31, 2022, the current ratio decreased to 1.32, suggesting a slight decline in the company's ability to cover its short-term obligations.
Further analysis reveals a more significant decline in the current ratio to 1.21 as of December 31, 2023, signaling potential challenges in meeting short-term financial obligations. The ratio continued its downward trajectory to 1.13 by December 31, 2024, indicating a further strain on Lockheed Martin's short-term liquidity position.
Overall, the trend in Lockheed Martin Corporation's current ratio highlights fluctuations in its ability to meet immediate financial obligations over the past five years. An upward trend in the current ratio indicates an improved liquidity position, while a declining ratio may raise concerns about the company's short-term financial health.