Lockheed Martin Corporation (LMT)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,920,000 | 5,732,000 | 6,315,000 | 6,833,000 | 6,230,000 |
| Revenue | US$ in thousands | 67,571,000 | 65,984,000 | 67,044,000 | 65,398,000 | 59,812,000 |
| Net profit margin | 10.24% | 8.69% | 9.42% | 10.45% | 10.42% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $6,920,000K ÷ $67,571,000K
= 10.24%
The net profit margin of Lockheed Martin Corp. has exhibited some variability over the past five years. It increased to 10.24% in 2023 from 8.69% in 2022, but it was lower than the 10.45% and 10.42% achieved in 2020 and 2019, respectively. The trend indicates some fluctuation in the company's ability to convert revenue into profits. A higher net profit margin generally suggests better cost control and efficiency in operations, while a lower margin may indicate higher costs or lower revenue. Further analysis of the company's cost structure and revenue generation is warranted to understand the factors driving these changes in the net profit margin.