Lockheed Martin Corporation (LMT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 55,617,000 | 52,456,000 | 52,880,000 | 50,873,000 | 50,710,000 |
| Operating ROA | 12.61% | 16.22% | 15.79% | 17.93% | 17.05% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $7,013,000K ÷ $55,617,000K
= 12.61%
Looking at Lockheed Martin Corporation's operating return on assets (ROA) over the past five years, we observe the following trend:
- As of December 31, 2020, the operating ROA stood at 17.05%.
- By December 31, 2021, it slightly increased to 17.93%, indicating efficient utilization of assets to generate operating income.
- However, in the subsequent two years, there was a slight decline in operating ROA. By December 31, 2022, it decreased to 15.79% and then to 16.22% by December 31, 2023.
- The downward trend continued, with the operating ROA falling to 12.61% as of December 31, 2024, signifying potential challenges in effectively generating operating income relative to asset investments.
Overall, Lockheed Martin Corporation's operating ROA has shown fluctuations over the past five years, with an initial increase followed by a subsequent decline. This suggests a need for the company to focus on optimizing asset utilization to maintain and improve profitability in the future.