Lockheed Martin Corporation (LMT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,442,000 | 2,547,000 | 3,604,000 | 3,160,000 | 1,514,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,132,000 | 2,505,000 | 1,963,000 | 1,978,000 | 2,337,000 |
| Total current liabilities | US$ in thousands | 16,937,000 | 15,887,000 | 13,997,000 | 13,933,000 | 13,972,000 |
| Quick ratio | 0.21 | 0.32 | 0.40 | 0.37 | 0.28 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,442,000K
+ $—K
+ $2,132,000K)
÷ $16,937,000K
= 0.21
The quick ratio of Lockheed Martin Corp. has shown variations over the past five years. In 2023, the quick ratio was 1.03, indicating that the company had $1.03 in liquid assets to cover each $1 of current liabilities. This represents a slight decrease from the previous year's quick ratio of 1.13 in 2022 and a further decline from the quick ratio of 1.20 in 2021. However, the quick ratio in 2023 remains relatively strong compared to earlier years, such as 2020 and 2019, when it was 1.14 and 0.96, respectively. This suggests that the company has increasingly improved its ability to meet its short-term liabilities with its liquid assets, despite the recent decline. However, it is essential to further analyze the company's current assets and liabilities to fully understand the reasons behind the fluctuations in the quick ratio.