Lockheed Martin Corporation (LMT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,456,000 | 56,666,000 | 56,978,000 | 54,622,000 | 52,880,000 | 52,030,000 | 51,758,000 | 51,510,000 | 50,873,000 | 51,843,000 | 52,099,000 | 51,437,000 | 50,710,000 | 50,773,000 | 49,603,000 | 49,248,000 | 47,528,000 | 49,275,000 | 47,840,000 | 47,684,000 |
| 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 |
| Financial leverage ratio | 7.67 | 6.11 | 6.17 | 5.66 | 5.71 | 4.35 | 4.53 | 5.15 | 4.64 | 5.38 | 7.99 | 8.15 | 8.43 | 10.25 | 13.22 | 14.29 | 15.20 | 12.66 | 16.79 | 19.34 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,456,000K ÷ $6,835,000K
= 7.67
The financial leverage ratio of Lockheed Martin Corp. has shown fluctuations over the past eight quarters. The ratio stood at 7.67 as of December 31, 2023, indicating a relatively high level of financial leverage compared to the previous quarters. This may suggest that the company is relying more on debt to finance its assets. However, it's important to note that a higher financial leverage ratio can also magnify returns on equity when the company is performing well.
In the preceding quarters, the financial leverage ratio ranged between 4.35 and 6.17, showing some variability in the company's leverage position. The most significant change occurred between March 27, 2022, and September 25, 2022, when the ratio increased from 4.53 to 5.71. This increase could signal a change in the company's capital structure and its approach to financing operations and investments.
It is crucial to consider the reasons behind these fluctuations and understand the company's overall financial strategy and performance to gauge the implications of the changing leverage ratios. Furthermore, investors and stakeholders should closely monitor this metric to assess the potential risk and return trade-offs associated with the company's financing decisions.
See also:
Lockheed Martin Corporation Financial Leverage (Quarterly Data)