Lockheed Martin Corporation (LMT)
Debt-to-equity 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-equity ratio | 2.53 | 1.86 | 1.87 | 1.61 | 1.67 | 0.96 | 1.02 | 1.11 | 1.06 | 1.21 | 1.79 | 1.85 | 1.94 | 2.36 | 3.25 | 3.32 | 3.65 | 3.25 | 4.43 | 5.12 |
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 over the past eight quarters, indicating changes in the company's capital structure and financial leverage. The ratio stood at 2.55 at the end of December 2023, signifying a higher reliance on debt financing compared to equity. This represents an increase from the previous quarter's ratio of 1.88. The elevated ratio suggests that a significant portion of the company's funding is derived from debt, which can increase financial risk and interest expense.
Looking back, the trend shows notable fluctuations, with the ratio reaching a peak of 2.55 in December 2023 and a low of 0.96 in September 2022. This fluctuation indicates potential changes in the company's financing decisions and capital structure management. It is essential for investors and stakeholders to closely monitor the ratio to assess Lockheed Martin Corp.'s ability to meet its debt obligations and the overall risk associated with its financial leverage.