Stock Analysis on Net
Stock Analysis on Net

Lockheed Martin Corp. (NYSE:LMT)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Lockheed Martin Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 1.29 1.25 1.32 1.29 1.26
Adjusted 1.36 1.34 1.38 1.38 1.35
Solvency Ratios
Debt to Equity
Reported 2.55 1.68 1.07 2.02 4.05
Adjusted 4.79 3.03 1.51 5.17 —
Debt to Capital
Reported 0.72 0.63 0.52 0.67 0.80
Adjusted 0.83 0.75 0.60 0.84 1.01
Financial Leverage
Reported 7.67 5.71 4.64 8.43 15.20
Adjusted 12.72 8.89 5.60 18.38 —
Profitability Ratios
Net Profit Margin
Reported 10.24% 8.69% 9.42% 10.45% 10.42%
Adjusted 8.35% 12.06% 16.78% 9.67% 8.73%
Return on Equity (ROE)
Reported 101.24% 61.86% 57.62% 113.60% 199.23%
Adjusted 144.96% 143.98% 129.62% 246.15% —
Return on Assets (ROA)
Reported 13.19% 10.84% 12.41% 13.47% 13.11%
Adjusted 11.40% 16.20% 23.15% 13.39% 11.81%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Lockheed Martin Corp. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Lockheed Martin Corp. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Lockheed Martin Corp. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Lockheed Martin Corp. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Lockheed Martin Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Lockheed Martin Corp. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Lockheed Martin Corp. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Lockheed Martin Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net sales 67,571 65,984 67,044 65,398 59,812
Total assets 52,456 52,880 50,873 50,710 47,528
Activity Ratio
Total asset turnover1 1.29 1.25 1.32 1.29 1.26
Adjusted
Selected Financial Data (US$ in millions)
Net sales 67,571 65,984 67,044 65,398 59,812
Adjusted total assets2 49,503 49,136 48,583 47,235 44,209
Activity Ratio
Adjusted total asset turnover3 1.36 1.34 1.38 1.38 1.35

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= 67,571 ÷ 52,456 = 1.29

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 67,571 ÷ 49,503 = 1.36

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Lockheed Martin Corp. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 17,459 15,547 11,676 12,169 12,654
Stockholders’ equity 6,835 9,266 10,959 6,015 3,127
Solvency Ratio
Debt to equity1 2.55 1.68 1.07 2.02 4.05
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 18,636 16,764 13,076 13,284 13,759
Adjusted total equity3 3,892 5,527 8,677 2,570 (136)
Solvency Ratio
Adjusted debt to equity4 4.79 3.03 1.51 5.17 —

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 17,459 ÷ 6,835 = 2.55

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 18,636 ÷ 3,892 = 4.79

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Lockheed Martin Corp. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 17,459 15,547 11,676 12,169 12,654
Total capital 24,294 24,813 22,635 18,184 15,781
Solvency Ratio
Debt to capital1 0.72 0.63 0.52 0.67 0.80
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 18,636 16,764 13,076 13,284 13,759
Adjusted total capital3 22,528 22,291 21,753 15,854 13,623
Solvency Ratio
Adjusted debt to capital4 0.83 0.75 0.60 0.84 1.01

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 17,459 ÷ 24,294 = 0.72

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 18,636 ÷ 22,528 = 0.83

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Lockheed Martin Corp. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 52,456 52,880 50,873 50,710 47,528
Stockholders’ equity 6,835 9,266 10,959 6,015 3,127
Solvency Ratio
Financial leverage1 7.67 5.71 4.64 8.43 15.20
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 49,503 49,136 48,583 47,235 44,209
Adjusted total equity3 3,892 5,527 8,677 2,570 (136)
Solvency Ratio
Adjusted financial leverage4 12.72 8.89 5.60 18.38 —

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 52,456 ÷ 6,835 = 7.67

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 49,503 ÷ 3,892 = 12.72

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Lockheed Martin Corp. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 6,920 5,732 6,315 6,833 6,230
Net sales 67,571 65,984 67,044 65,398 59,812
Profitability Ratio
Net profit margin1 10.24% 8.69% 9.42% 10.45% 10.42%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 5,642 7,958 11,247 6,326 5,219
Net sales 67,571 65,984 67,044 65,398 59,812
Profitability Ratio
Adjusted net profit margin3 8.35% 12.06% 16.78% 9.67% 8.73%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 6,920 ÷ 67,571 = 10.24%

2 Adjusted net earnings. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 5,642 ÷ 67,571 = 8.35%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Lockheed Martin Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 6,920 5,732 6,315 6,833 6,230
Stockholders’ equity 6,835 9,266 10,959 6,015 3,127
Profitability Ratio
ROE1 101.24% 61.86% 57.62% 113.60% 199.23%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 5,642 7,958 11,247 6,326 5,219
Adjusted total equity3 3,892 5,527 8,677 2,570 (136)
Profitability Ratio
Adjusted ROE4 144.96% 143.98% 129.62% 246.15% —

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 6,920 ÷ 6,835 = 101.24%

2 Adjusted net earnings. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total equity
= 100 × 5,642 ÷ 3,892 = 144.96%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Lockheed Martin Corp. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 6,920 5,732 6,315 6,833 6,230
Total assets 52,456 52,880 50,873 50,710 47,528
Profitability Ratio
ROA1 13.19% 10.84% 12.41% 13.47% 13.11%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 5,642 7,958 11,247 6,326 5,219
Adjusted total assets3 49,503 49,136 48,583 47,235 44,209
Profitability Ratio
Adjusted ROA4 11.40% 16.20% 23.15% 13.39% 11.81%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 6,920 ÷ 52,456 = 13.19%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 5,642 ÷ 49,503 = 11.40%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Lockheed Martin Corp. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.