Lockheed Martin Corporation (LMT)
Return on equity (ROE)
| 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 |
| Total stockholders’ equity | US$ in thousands | 6,835,000 | 9,266,000 | 10,959,000 | 6,015,000 | 3,127,000 |
| ROE | 101.24% | 61.86% | 57.62% | 113.60% | 199.23% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $6,920,000K ÷ $6,835,000K
= 101.24%
The return on equity (ROE) of Lockheed Martin Corp. has displayed considerable variability over the past five years. In 2019, the ROE stood at a high 199.23%, indicating strong profitability in relation to shareholders' equity. This was followed by a significant decrease in 2020 to 113.60%. However, the ROE dropped further in 2021 to 57.62%, signaling a substantial decline in profitability relative to the equity investment. The company's ROE then exhibited an improvement in 2022, reaching 61.86%. Notably, in the most recent year, the ROE surged to 101.24%, signifying a substantial increase in profitability relative to shareholders' equity. This variability suggests that Lockheed Martin Corp. has experienced fluctuations in its ability to generate profits from the shareholders' equity over the past five years, with the most recent year showing a notable improvement in this aspect.