Lockheed Martin Corporation (LMT)
Debt-to-capital 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 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 |
| Debt-to-capital ratio | 0.72 | 0.65 | 0.65 | 0.62 | 0.62 | 0.49 | 0.50 | 0.53 | 0.52 | 0.55 | 0.64 | 0.65 | 0.66 | 0.70 | 0.76 | 0.77 | 0.78 | 0.76 | 0.82 | 0.84 |
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 eight quarters, ranging from 0.49 to 0.72. The ratio measures the proportion of the company's capital that is financed by debt, with a higher ratio indicating a greater reliance on debt financing.
The trend shows an increase in the ratio from 0.49 in Q3 2022 to 0.72 in Q4 2023, peaking in the most recent period. This suggests that the company has been utilizing more debt in its capital structure, which may indicate increased borrowing or decreased equity.
It is important to note that an increasing trend in the debt-to-capital ratio can indicate a higher financial risk and potential difficulties in meeting debt obligations. On the other hand, it could also signal strategic leverage to finance growth opportunities or investments. Further analysis of the company's overall financial health, cash flow, and ability to service the debt would provide a more holistic understanding of the implications of the observed trend.
See also:
Lockheed Martin Corporation Debt to Capital (Quarterly Data)