Lockheed Martin Corporation (LMT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 9.88% | 12.09% | 12.03% | 12.10% | 12.55% | 12.54% | 12.70% | 12.74% | 12.56% | 12.99% | 13.39% | 13.36% | 13.52% | 13.34% | 13.00% | 13.26% | 13.23% | 13.33% | 13.49% | 13.53% |
| Operating profit margin | 9.92% | 12.12% | 12.02% | 12.15% | 12.59% | 12.57% | 12.80% | 12.78% | 12.65% | 13.15% | 13.47% | 13.50% | 13.61% | 13.50% | 13.19% | 13.19% | 13.22% | 13.24% | 13.45% | 13.72% |
| Pretax margin | 8.76% | 11.00% | 11.09% | 11.40% | 11.98% | 12.03% | 12.30% | 10.00% | 10.12% | 10.78% | 8.66% | 11.25% | 11.26% | 10.92% | 12.91% | 12.75% | 12.59% | 12.27% | 12.09% | 11.98% |
| Net profit margin | 7.51% | 9.36% | 9.48% | 9.73% | 10.24% | 10.29% | 10.48% | 8.60% | 8.69% | 9.07% | 7.33% | 9.45% | 9.42% | 9.13% | 10.69% | 10.53% | 10.45% | 10.18% | 10.25% | 10.21% |
Lockheed Martin Corporation's profitability ratios have experienced fluctuations over the years. The gross profit margin, which indicates the percentage of revenue that exceeds the cost of goods sold, decreased from 13.53% in March 2020 to 9.88% in December 2024. This downward trend may suggest challenges in managing production costs relative to sales revenue.
The operating profit margin, reflecting the company's ability to control operating expenses, also saw a decline from 13.72% in March 2020 to 9.92% in December 2024. This may indicate decreasing efficiency in managing operational costs over the period.
The pretax margin, representing the percentage of each dollar of revenue that results in pre-tax profit, exhibited a similar decreasing pattern, from 12.59% in December 2020 to 8.76% in December 2024. This trend could be a result of various factors such as changes in tax rates or increased expenses impacting profitability.
The net profit margin, which shows the portion of revenue that translates into net income, experienced a decline from 10.21% in March 2020 to 7.51% in December 2024. This reduction in net profit margin suggests that Lockheed Martin may be facing challenges in generating bottom-line profits relative to its total revenue.
In summary, Lockheed Martin Corporation's profitability ratios have shown a downward trend over the years, indicating potential challenges in controlling costs and maintaining profitability. Investors and stakeholders may need to closely monitor the company's operations and financial performance to understand the underlying reasons for these trends.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.67% | 15.57% | 15.51% | 15.40% | 16.22% | 15.01% | 15.14% | 15.47% | 15.79% | 16.36% | 16.70% | 17.23% | 17.93% | 17.28% | 16.91% | 16.92% | 17.05% | 16.75% | 17.06% | 17.02% |
| Return on assets (ROA) | 9.59% | 12.02% | 12.23% | 12.33% | 13.19% | 12.29% | 12.39% | 10.41% | 10.84% | 11.28% | 9.09% | 12.06% | 12.41% | 11.69% | 13.71% | 13.52% | 13.47% | 12.88% | 13.00% | 12.68% |
| Return on total capital | 114.57% | 123.22% | 135.87% | 126.47% | 122.98% | 85.83% | 92.12% | 70.02% | 74.08% | 63.07% | 53.56% | 79.62% | 74.09% | 81.19% | 140.22% | 141.70% | 145.82% | 170.08% | 219.17% | 230.88% |
| Return on equity (ROE) | 84.26% | 92.71% | 109.09% | 101.89% | 101.24% | 75.11% | 76.41% | 58.97% | 61.86% | 49.05% | 41.16% | 62.10% | 57.62% | 62.90% | 109.51% | 110.16% | 113.60% | 132.02% | 171.93% | 181.17% |
Based on the provided data, we can analyze Lockheed Martin Corporation's profitability ratios as follows:
1. Operating Return on Assets (Operating ROA): This ratio reflects the company's operating profit generated per dollar of assets. Lockheed Martin's Operating ROA has shown fluctuations over the observed periods, with values ranging from 15.01% to 17.93%. The trend indicates some volatility, suggesting variations in the efficiency of asset utilization to generate operating income.
2. Return on Assets (ROA): ROA measures the company's overall profitability in relation to its total assets. Lockheed Martin's ROA also exhibits variability, with values ranging from 9.09% to 13.71%. The fluctuations in ROA indicate changes in the effectiveness of utilizing assets to generate profit over time.
3. Return on Total Capital: This ratio represents the return earned on the total capital invested in the company. Lockheed Martin's Return on Total Capital has fluctuated significantly, with values ranging from 53.56% to 230.88%. The downward trend suggests fluctuations in the company's ability to generate returns on its total capital employed.
4. Return on Equity (ROE): ROE shows how efficiently the company is utilizing shareholder equity to generate profit. Lockheed Martin's ROE has varied from 41.16% to 181.17%, indicating fluctuations in the company's ability to generate returns for its shareholders over the analyzed periods.
Overall, the analysis of Lockheed Martin's profitability ratios highlights the company's performance in generating profits relative to its assets, total capital, and equity. The fluctuations in these ratios suggest varying degrees of efficiency in capital and asset utilization, which may be influenced by factors such as operational performance, financial management, and market conditions.
See also:
Lockheed Martin Corporation Profitability Ratios (Quarterly Data)