Lockheed Martin Corporation (LMT)
Debt-to-equity 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-equity ratio | 2.53 | 1.67 | 1.06 | 1.94 | 3.65 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $17,291,000K ÷ $6,835,000K
= 2.53
The debt-to-equity ratio of Lockheed Martin Corp. has fluctuated significantly over the past five years. In 2019, the ratio was 4.05, signifying a relatively high reliance on debt for financing. However, this ratio decreased to 2.02 in 2020, indicating a reduction in debt relative to equity. Subsequently, in 2021, the ratio further declined to 1.07, suggesting a healthier balance between debt and equity. However, there was a notable increase in the ratio to 1.67 in 2022 and a further rise to 2.55 in 2023, indicating a heavier reliance on debt for financing in these respective years.
The fluctuation in the debt-to-equity ratio suggests variations in the company's capital structure and financial leverage. Investors, analysts, and creditors may view the increase in the ratio as a potential indicator of increased financial risk, while a decrease may suggest a more conservative financial approach. Therefore, it is essential to monitor the trend of this ratio to assess the company's long-term financial stability and risk management.