Lockheed Martin Corporation (LMT)
Quick ratio
| 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 | US$ in thousands | 1,442,000 | 3,551,000 | 3,673,000 | 2,440,000 | 2,547,000 | 2,430,000 | 1,775,000 | 1,883,000 | 3,604,000 | 2,727,000 | 2,745,000 | 2,933,000 | 3,160,000 | 3,585,000 | 2,855,000 | 1,988,000 | 1,514,000 | 2,539,000 | 1,167,000 | 991,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 2,480,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 2,132,000 | 2,405,000 | 3,427,000 | 2,583,000 | 2,505,000 | 2,484,000 | 3,401,000 | 2,527,000 | 1,963,000 | 2,267,000 | 2,611,000 | 2,214,000 | 1,978,000 | 2,480,000 | 2,835,000 | 2,892,000 | 2,337,000 | 2,384,000 | 2,546,000 | 2,833,000 |
| Total current liabilities | US$ in thousands | 16,937,000 | 17,193,000 | 17,704,000 | 16,982,000 | 15,887,000 | 16,347,000 | 16,479,000 | 16,047,000 | 13,997,000 | 15,026,000 | 15,242,000 | 14,717,000 | 13,933,000 | 15,201,000 | 14,888,000 | 15,652,000 | 13,972,000 | 15,515,000 | 15,132,000 | 15,403,000 |
| 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 |
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, also known as the acid-test ratio, measures the ability of a company to meet its short-term obligations using its most liquid assets. A quick ratio of 1 or higher is generally considered healthy as it indicates that the company has enough liquid assets to cover its short-term liabilities.
Looking at the data provided for Lockheed Martin Corp., the quick ratio has been relatively stable over the past eight quarters, ranging from 1.03 to 1.16. This indicates that the company has consistently maintained a strong ability to meet its short-term obligations using its liquid assets.
The slight fluctuations in the quick ratio may be indicative of changes in the company's current assets and liabilities, but the overall pattern suggests a consistent liquidity position. It's important to note that while the quick ratio of 1.03 in December 2023 is slightly lower than previous quarters, it still exceeds the threshold of 1, indicating a satisfactory level of liquidity.
In conclusion, based on the data provided, Lockheed Martin Corp. has demonstrated a stable and healthy quick ratio, reflecting its ability to meet short-term financial obligations using its readily available assets. This suggests that the company has maintained a strong liquidity position over the past eight quarters.