Lockheed Martin Corporation (LMT)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 7,013,000 | 8,507,000 | 8,348,000 | 9,123,000 | 8,644,000 |
| Revenue | US$ in thousands | 71,043,000 | 67,571,000 | 65,984,000 | 67,044,000 | 65,398,000 |
| Operating profit margin | 9.87% | 12.59% | 12.65% | 13.61% | 13.22% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $7,013,000K ÷ $71,043,000K
= 9.87%
Lockheed Martin Corporation's operating profit margin has exhibited some fluctuations over the past five years. Starting at 13.22% on December 31, 2020, it increased to 13.61% by December 31, 2021, showing a positive trend. However, in the subsequent years, there was a slight decline in the operating profit margin, dropping to 12.65% by December 31, 2022, and further to 12.59% by December 31, 2023. The most significant decrease occurred by the end of December 31, 2024, with an operating profit margin of 9.87%.
This trend indicates that Lockheed Martin Corporation's ability to generate profit from its core operations has slightly decreased over the years, especially from 2022 onwards. It is essential for the company to assess the factors contributing to the decline in operating profit margin to implement strategies that can potentially improve profitability and sustain long-term financial performance.