Lockheed Martin Corporation (LMT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 55,617,000 | 52,456,000 | 52,880,000 | 50,873,000 | 50,710,000 |
| Total stockholders’ equity | US$ in thousands | 6,333,000 | 6,835,000 | 9,266,000 | 10,959,000 | 6,015,000 |
| Financial leverage ratio | 8.78 | 7.67 | 5.71 | 4.64 | 8.43 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $55,617,000K ÷ $6,333,000K
= 8.78
Lockheed Martin Corporation's financial leverage ratio has shown fluctuation over the years based on the provided data. The ratio was at 8.43 as of December 31, 2020, indicating a relatively high level of financial leverage. However, there was a noticeable decrease in the ratio to 4.64 as of December 31, 2021, suggesting a reduction in the company's reliance on debt.
Subsequently, the financial leverage ratio increased to 5.71 by December 31, 2022, and further to 7.67 by December 31, 2023, reflecting a gradual rise in leverage. By December 31, 2024, the ratio stood at 8.78, indicating a higher level of leverage compared to the previous year.
It is important for stakeholders to monitor changes in Lockheed Martin's financial leverage ratio as it can indicate the company's ability to meet its financial obligations and the level of risk associated with its capital structure. Variations in the ratio may signal shifts in the company's financing strategy and should be evaluated in conjunction with other financial metrics for a comprehensive assessment of Lockheed Martin's financial health.