Lockheed Martin Corporation (LMT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 9.75% | 12.55% | 12.56% | 13.52% | 13.23% |
| Operating profit margin | 9.87% | 12.59% | 12.65% | 13.61% | 13.22% |
| Pretax margin | 8.76% | 11.98% | 10.12% | 11.26% | 12.59% |
| Net profit margin | 7.51% | 10.24% | 8.69% | 9.42% | 10.45% |
Lockheed Martin Corporation's profitability ratios over the past five years show a general trend of decline. The gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, has decreased from 13.23% in December 2020 to 9.75% in December 2024. This decline may suggest challenges in managing production costs or pricing strategies.
Similarly, the operating profit margin, which shows the company's ability to generate profit from its core operations, declined from 13.22% in December 2020 to 9.87% in December 2024. This trend indicates potential inefficiencies in managing operating expenses or declining profitability in key business segments.
The pretax margin, reflecting the percentage of profit before taxes earned from revenue, decreased from 12.59% in December 2020 to 8.76% in December 2024. This decline may signal challenges in controlling other expenses or fluctuations in tax liabilities affecting the company's bottom line.
Lastly, the net profit margin, which measures the proportion of revenue that translates into net income, dropped from 10.45% in December 2020 to 7.51% in December 2024. This downward trend indicates decreasing profitability after accounting for all expenses, including taxes and interest payments.
In summary, Lockheed Martin Corporation's profitability ratios have shown a consistent decline over the years, highlighting potential challenges in managing costs, operational efficiency, and overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.61% | 16.22% | 15.79% | 17.93% | 17.05% |
| Return on assets (ROA) | 9.59% | 13.19% | 10.84% | 12.41% | 13.47% |
| Return on total capital | 114.57% | 124.46% | 78.82% | 74.09% | 146.73% |
| Return on equity (ROE) | 84.26% | 101.24% | 61.86% | 57.62% | 113.60% |
Lockheed Martin Corporation's profitability ratios show varying performance over the period from December 31, 2020, to December 31, 2024.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for Lockheed Martin has been relatively stable, ranging from 15.79% in 2022 to a high of 17.93% in 2021. This ratio indicates the company's ability to generate operating profit from its assets.
2. Return on Assets (ROA):
- The ROA has fluctuated over the years, with a peak of 13.47% in 2020 and a low of 9.59% in 2024. This ratio reflects how efficiently the company is utilizing its assets to generate profits.
3. Return on Total Capital:
- Lockheed Martin's Return on Total Capital has shown significant variation, with a high of 146.73% in 2020 and decreasing to 74.09% in 2021 before recovering to 124.46% in 2023. This ratio illustrates the company's ability to generate returns for both equity and debt holders.
4. Return on Equity (ROE):
- The ROE has also seen fluctuations, ranging from 57.62% in 2021 to a high of 113.60% in 2020. This ratio indicates how effectively the company is using shareholders' equity to generate profits.
Overall, Lockheed Martin's profitability ratios indicate that the company has been able to generate returns for its stakeholders, though with some variability in performance over the period under consideration. Continued monitoring and analysis of these ratios can provide valuable insights into the company's financial health and performance.