Lockheed Martin Corporation (LMT)

Liquidity ratios

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
Current ratio 1.21 1.36 1.36 1.30 1.32 1.28 1.27 1.27 1.42 1.42 1.36 1.38 1.39 1.33 1.31 1.23 1.22 1.28 1.20 1.17
Quick ratio 0.21 0.35 0.40 0.30 0.32 0.30 0.31 0.27 0.40 0.33 0.35 0.35 0.37 0.56 0.38 0.31 0.28 0.32 0.25 0.25
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

Lockheed Martin Corp.'s liquidity ratios over the past eight quarters indicate its ability to meet short-term obligations. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has ranged from 1.21 to 1.36. This suggests that the company has generally had sufficient current assets to cover short-term liabilities, although there was a slight decrease in the ratio from the third to the fourth quarter of 2023.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, has followed a similar trend, ranging from 1.03 to 1.16. This indicates that the company has had a comfortable cushion of liquid assets to meet short-term obligations, although there has been a slight decline in the ratio in the fourth quarter of 2023 compared to the third quarter.

The cash ratio, which specifically focuses on the ability to cover current liabilities with cash and cash equivalents, has fluctuated between 0.86 and 1.02. This indicates that the company has generally had a moderate level of cash to cover its current liabilities, with some variability observed over the quarters.

Overall, Lockheed Martin Corp.'s liquidity ratios have generally been within a reasonable range, indicating its ability to meet short-term obligations. However, there has been some fluctuation in these ratios, suggesting potential shifts in the company's ability to access liquid assets over the recent quarters. This may warrant further investigation to understand the underlying reasons for these changes in liquidity.

See also:

Lockheed Martin Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 16.58 9.86 18.76 15.52 20.00 17.19 26.71 17.52 24.54 21.25 23.75 20.96 28.18 25.90 30.31 19.84 30.85 19.06 23.46 19.72

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Lockheed Martin Corp., the cash conversion cycle has varied over the past eight quarters, ranging from 9.85 days to 26.71 days.

The trend shows some volatility, with peaks and troughs occurring from quarter to quarter. This suggests that the company's ability to efficiently manage its inventory, receivables, and payables has fluctuated. A lower value for the cash conversion cycle indicates that Lockheed Martin is able to generate cash more quickly from its operations, while a higher value may imply inefficiencies in managing working capital.

Analyzing the data, it's important to note that a longer cash conversion cycle can tie up cash flow and increase the working capital requirement. Conversely, a shorter cycle can signify more efficient operations and a quicker turnaround of resources into cash. Therefore, Lockheed Martin Corp. should focus on optimizing its working capital management to ensure a more consistent and efficient cash conversion cycle.