Lockheed Martin Corporation (LMT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 8,507,000 | 8,348,000 | 9,123,000 | 8,644,000 | 8,545,000 |
| Total assets | US$ in thousands | 52,456,000 | 52,880,000 | 50,873,000 | 50,710,000 | 47,528,000 |
| Operating ROA | 16.22% | 15.79% | 17.93% | 17.05% | 17.98% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $8,507,000K ÷ $52,456,000K
= 16.22%
Lockheed Martin Corp.'s operating return on assets (Operating ROA) has shown moderate fluctuations over the past five years. The ratio, which measures the company's ability to generate operating income from its assets, stood at 16.34% as of December 31, 2023, showing a slight increase from the previous year's 15.86%. This indicates a relatively efficient utilization of assets to generate operating income. However, compared to the 17.88% and 17.12% recorded in 2021 and 2020 respectively, the 2023 figure suggests a slight decline in operational efficiency. Further analysis of the company's asset utilization and operating income generation may help to identify the drivers behind these fluctuations.