Lockheed Martin Corporation (LMT)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 17,291,000 | 15,429,000 | 11,670,000 | 11,669,000 | 11,404,000 |
| Total stockholders’ equity | US$ in thousands | 6,835,000 | 9,266,000 | 10,959,000 | 6,015,000 | 3,127,000 |
| Debt-to-capital ratio | 0.72 | 0.62 | 0.52 | 0.66 | 0.78 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $17,291,000K ÷ ($17,291,000K + $6,835,000K)
= 0.72
The debt-to-capital ratio of Lockheed Martin Corp. has fluctuated over the past five years. In 2019, the ratio was at its highest point, standing at 0.80, indicating that the company's level of debt in relation to its total capital was relatively high. However, the ratio decreased to 0.67 in 2020, suggesting a reduction in the proportion of debt relative to capital. Subsequently, in 2021, the ratio further declined to 0.52, signaling an even lower reliance on debt financing compared to total capital.
In 2022, the ratio saw an increase, reaching 0.62, indicating a slight uptick in the proportion of debt to capital. By the end of 2023, the ratio further increased to 0.72, signifying a notable rise in the portion of debt relative to the company's total capital.
This fluctuation in the debt-to-capital ratio suggests that Lockheed Martin Corp. has made adjustments to its capital structure and debt levels over the years, potentially impacting its financial risk and stability. Further analysis of the company's financial leverage and debt management strategies would provide additional insights into its long-term financial health and risk profile.