Lockheed Martin Corporation (LMT)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,014,000 | 9,007,000 | 9,061,000 | 7,303,000 | 7,303,000 | 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 | 7,894,000 | 7,559,000 | 7,368,000 | 7,107,000 |
| Long-term debt | US$ in thousands | 17,291,000 | 17,221,000 | 17,262,000 | 15,485,000 | 15,429,000 | 11,480,000 | 11,644,000 | 11,145,000 | 11,670,000 | 11,668,000 | 11,665,000 | 11,657,000 | 11,669,000 | 11,675,000 | 12,174,000 | 11,439,000 | 11,404,000 | 12,652,000 | 12,637,000 | 12,621,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,127,000 | 3,893,000 | 2,850,000 | 2,465,000 |
| Return on total capital | 37.36% | 34.00% | 34.19% | 29.06% | 29.57% | 32.19% | 26.53% | 37.66% | 35.88% | 36.71% | 50.28% | 49.77% | 49.60% | 50.66% | 51.62% | 53.45% | 54.33% | 45.69% | 47.58% | 47.11% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,014,000K ÷ ($17,291,000K + $6,835,000K)
= 37.36%
Lockheed Martin Corp.'s return on total capital has shown a consistent and relatively high performance over the past year. The return on total capital has ranged from 32.63% to 41.03%, indicating a strong ability to generate profits from its capital investments. This suggests effective capital allocation and efficient use of resources to generate returns for the company and its investors. The stable and favorable trend in return on total capital reflects positively on the company's financial management and operational performance. However, it would be beneficial to compare these ratios with industry benchmarks to gain a better understanding of Lockheed Martin Corp.'s competitive position.