Lockheed Martin Corporation (LMT)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash 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
Receivables US$ in thousands
Total current liabilities US$ in thousands 19,420,000 16,937,000 15,887,000 13,997,000 13,933,000
Quick ratio 0.13 0.23 0.16 0.26 0.23

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,483,000K + $—K + $—K) ÷ $19,420,000K
= 0.13

The quick ratio of Lockheed Martin Corporation has exhibited some fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at 0.23, indicating that the company had $0.23 in liquid assets available to cover each dollar of its current liabilities. By December 31, 2021, the quick ratio had improved slightly to 0.26, suggesting a strengthening ability to meet short-term obligations with its quick assets.

However, by December 31, 2022, the quick ratio dropped to 0.16, signaling a decrease in short-term liquidity compared to the previous year. This could raise concerns about the company's ability to address its current liabilities promptly. The ratio recovered to 0.23 as of December 31, 2023, showing a partial improvement in liquidity.

Nevertheless, the quick ratio significantly declined to 0.13 by December 31, 2024, indicating a notable decrease in the company's ability to meet its short-term obligations with its quick assets. This substantial drop in the quick ratio may warrant a closer examination of Lockheed Martin Corporation's liquidity position to assess the potential impact on its financial stability and operational capabilities.


See also:

Lockheed Martin Corporation Quick Ratio