Lockheed Martin Corporation (LMT)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 8.78 | 7.71 | 8.92 | 8.27 | 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 |
Lockheed Martin Corporation's solvency ratios indicate a consistently strong financial position in terms of leverage and debt management. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all maintained a stable 0.00 value across multiple reporting periods. This suggests that the company's assets are primarily funded by equity rather than debt, indicating a low level of financial risk.
Moreover, the Financial Leverage Ratio has shown a decreasing trend over time, starting at 14.29 on March 31, 2020, and decreasing to 8.78 by December 31, 2024. This decreasing trend indicates that the company has been reducing its reliance on debt to finance its operations, which is a positive sign for long-term solvency.
Overall, based on these solvency ratios, Lockheed Martin Corporation appears to have a strong and sustainable financial position with a low level of debt and effective management of leverage, which is favorable for its long-term stability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.00 | 8.65 | 8.33 | 8.68 | 9.90 | 9.99 | 12.07 | 10.84 | 11.02 | 13.31 | 10.88 | 14.12 | 14.27 | 13.67 | 15.88 | 15.34 | 14.84 | 14.06 | 13.35 | 12.63 |
The interest coverage ratio of Lockheed Martin Corporation provides insight into the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a greater ability to cover interest expenses.
Looking at the historical data, the trend of Lockheed Martin's interest coverage ratio has generally been stable and strong, ranging between 10.88 and 15.88 over the past few years. The company's interest coverage improved from 12.63 in March 2020 to a peak of 15.88 in June 2021, reflecting a solid ability to cover its interest expenses.
However, there was a slight decline in the interest coverage ratio from June 2021 to December 2024, dropping to 7.00. This decline could raise concerns about Lockheed Martin's ability to comfortably cover its interest payments with its operating profits.
Overall, while Lockheed Martin Corporation has historically maintained a strong interest coverage ratio, investors and analysts should monitor any further decreases in the ratio as it could indicate increasing financial risk or challenges in meeting interest obligations.
See also:
Lockheed Martin Corporation Solvency Ratios (Quarterly Data)