Lockheed Martin Corporation (LMT)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 52,456,000 | 56,666,000 | 56,978,000 | 54,622,000 | 52,880,000 | 52,030,000 | 51,758,000 | 51,510,000 | 50,873,000 | 51,843,000 | 52,099,000 | 51,437,000 | 50,710,000 | 50,773,000 | 49,603,000 | 49,248,000 | 47,528,000 | 49,275,000 | 47,840,000 | 47,684,000 |
| Debt-to-assets ratio | 0.33 | 0.30 | 0.30 | 0.28 | 0.29 | 0.22 | 0.22 | 0.22 | 0.23 | 0.23 | 0.22 | 0.23 | 0.23 | 0.23 | 0.25 | 0.23 | 0.24 | 0.26 | 0.26 | 0.26 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $17,291,000K ÷ $52,456,000K
= 0.33
The debt-to-assets ratio of Lockheed Martin Corp. has exhibited some fluctuations over the past eight quarters. The ratio stood at 0.33 as of December 31, 2023, indicating that 33% of the company's assets were financed through debt. This represented an increase from the previous quarter, where the ratio was 0.31. However, from a longer-term perspective, the ratio has generally trended downward from 0.29 in March 2023 to 0.22 in September 2022, before experiencing a slight uptick in the latest quarter.
A higher debt-to-assets ratio suggests that a larger portion of the company's assets is financed through debt, indicating higher financial leverage and potential risk. Conversely, a lower ratio signifies a stronger financial position and lower risk. The fluctuations observed in Lockheed Martin Corp.'s debt-to-assets ratio over the past two years may reflect changes in the company's capital structure and borrowing levels.
It would be beneficial to further investigate the factors driving these fluctuations, such as changes in borrowing activities, asset values, or overall financial performance. This analysis could provide valuable insights into the company's strategic decisions and financial health.