Lockheed Martin Corporation (LMT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,256,000 | 8,872,000 | 8,390,000 | 8,410,000 | 8,406,000 | 7,960,000 | 8,512,000 | 6,754,000 | 6,864,000 | 7,547,000 | 6,123,000 | 7,964,000 | 8,119,000 | 7,819,000 | 9,145,000 | 8,944,000 | 8,771,000 | 8,424,000 | 8,221,000 | 7,956,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,333,000 | 7,200,000 | 6,175,000 | 6,650,000 | 6,835,000 | 9,274,000 | 9,240,000 | 9,646,000 | 9,266,000 | 11,966,000 | 11,432,000 | 10,002,000 | 10,959,000 | 9,631,000 | 6,522,000 | 6,312,000 | 6,015,000 | 4,953,000 | 3,751,000 | 3,446,000 |
| 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 periods reported. The data indicates a high return on total capital as of March 31, 2020, and June 30, 2020, at 230.88% and 219.17%, respectively. However, there was a downward trend in the return on total capital from September 30, 2020, to December 31, 2020, with figures of 170.08% and 145.82%, respectively.
The trend continued in the following quarters, with a gradual decrease in return on total capital until September 30, 2021, where it dropped to 81.19%. This decline was possibly due to changes in the company's capital structure or operational efficiency during this period.
The return on total capital continued to fluctuate in subsequent quarters but began to show signs of improvement from March 31, 2023, onwards. The return on total capital increased significantly by December 31, 2023, reaching 122.98%, showing a strong rebound in the company's ability to generate profit relative to the total capital employed.
In the most recent periods reported, Lockheed Martin Corporation maintained a return on total capital above 100%, indicating that the company is effectively utilizing its capital to generate returns for its stakeholders. Overall, the analysis suggests that, despite fluctuations, Lockheed Martin Corporation has demonstrated a capacity to generate favorable returns on the total capital invested in its operations.