Lockheed Martin Corporation (LMT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,014,000 | 9,007,000 | 9,061,000 | 7,303,000 | 7,303,000 | 7,547,000 | 6,123,000 | 7,964,000 | 8,119,000 | 7,819,000 | 9,145,000 | 8,944,000 | 8,771,000 | 8,424,000 | 8,221,000 | 7,956,000 | 7,894,000 | 7,559,000 | 7,368,000 | 7,107,000 |
| Interest expense (ttm) | US$ in thousands | 916,000 | 864,000 | 772,000 | 690,000 | 623,000 | 567,000 | 563,000 | 564,000 | 569,000 | 572,000 | 576,000 | 583,000 | 591,000 | 599,000 | 616,000 | 630,000 | 653,000 | 667,000 | 682,000 | 684,000 |
| Interest coverage | 9.84 | 10.42 | 11.74 | 10.58 | 11.72 | 13.31 | 10.88 | 14.12 | 14.27 | 13.67 | 15.88 | 15.34 | 14.84 | 14.06 | 13.35 | 12.63 | 12.09 | 11.33 | 10.80 | 10.39 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,014,000K ÷ $916,000K
= 9.84
The interest coverage ratio for Lockheed Martin Corp. has shown a consistent upward trend over the past eight quarters, indicating its strong ability to meet its interest payment obligations. The ratio increased from 9.36 in December 2022 to 15.75 in March 2022, showcasing a steady improvement in the company's ability to cover its interest expenses. This trend suggests that the company's operating income is comfortably sufficient to cover its interest payments, reflecting positively on its financial health and stability. Overall, the consistently high interest coverage ratios signify that Lockheed Martin Corp. has a strong capacity to meet its financial obligations and demonstrates prudent management of its debt.
See also:
Lockheed Martin Corporation Interest Coverage (Quarterly Data)