Lockheed Martin Corporation (LMT)

Solvency ratios

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
Debt-to-assets ratio 0.33 0.30 0.30 0.28 0.29 0.22 0.22 0.22 0.23 0.23 0.22 0.23 0.23 0.23 0.25 0.23 0.24 0.26 0.26 0.26
Debt-to-capital ratio 0.72 0.65 0.65 0.62 0.62 0.49 0.50 0.53 0.52 0.55 0.64 0.65 0.66 0.70 0.76 0.77 0.78 0.76 0.82 0.84
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
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

The solvency ratios of Lockheed Martin Corp. provide valuable insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio, which measures the proportion of total assets financed by debt, remained relatively stable around 0.29 to 0.33 throughout the period, indicating that roughly 29% to 33% of the company's assets were funded by debt.

Similarly, the debt-to-capital ratio, which indicates the portion of the company's capital that is funded by debt, ranged from 0.62 to 0.72, displaying a consistent level of 62% to 72% of the company's capital being debt-financed.

The debt-to-equity ratio, a measure of financial leverage, increased from 0.96 to 2.55 over the period. This suggests that the company's reliance on debt relative to equity has been growing, with 2.55 times the level of debt compared to equity at the end of the period.

The financial leverage ratio, representing the extent to which the company utilizes debt in its capital structure, saw fluctuations between 4.35 and 7.67. This indicates an increasing reliance on debt to fund operations and expansion.

In summary, the solvency ratios of Lockheed Martin Corp. demonstrate a consistent level of debt utilization, with an increasing reliance on debt compared to equity and capital, as well as a rising financial leverage ratio. These trends highlight the importance of monitoring the company's ability to manage and service its debt obligations effectively.

Coverage ratios

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
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

Lockheed Martin Corp.'s interest coverage ratio has shown a consistent upward trend over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Lockheed Martin's interest coverage ratio has increased from 9.36 in December 2022 to 15.75 in March 2022. This indicates that the company's EBIT is more than sufficient to cover its interest expenses, reflecting a favorable financial position. The steady increase in the interest coverage ratio suggests that Lockheed Martin's profitability and financial stability have been improving over the past two years.

This trend is a positive signal to creditors and investors, indicating the company's robust financial health and its ability to comfortably meet its interest obligations. However, it is essential to monitor future interest coverage ratios to ensure that this positive trend continues and the company maintains its ability to service its debt effectively.

See also:

Lockheed Martin Corporation Solvency Ratios (Quarterly Data)