Lockheed Martin Corporation (LMT)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,256,000 | 8,507,000 | 7,303,000 | 8,119,000 | 8,826,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,333,000 | 6,835,000 | 9,266,000 | 10,959,000 | 6,015,000 |
| Return on total capital | 114.57% | 124.46% | 78.82% | 74.09% | 146.73% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,256,000K ÷ ($—K + $6,333,000K)
= 114.57%
Lockheed Martin Corporation's return on total capital has shown fluctuations over the past five years. The company experienced a significant increase in its return on total capital from 2020 to 2023, peaking at 146.73% in 2020 and then decreasing to 74.09% in 2021. However, in 2022, the return on total capital saw a slight rebound to 78.82%. Subsequently, there was a notable improvement in 2023, with the return on total capital reaching 124.46%. In 2024, the return on total capital slightly dipped to 114.57%.
Overall, Lockheed Martin Corporation has demonstrated strong performance in generating returns relative to its total capital over the analyzed period, with fluctuations reflecting changes in the company's financial efficiency and capital utilization. These variations may have been influenced by factors such as operational effectiveness, capital structure decisions, and overall market conditions impacting Lockheed Martin's financial performance.