Lockheed Martin Corp. (NYSE:LMT)

Goodwill

The goodwill value remained relatively stable over the period, with a slight increase from 10,806 million USD in 2020 to 11,067 million USD in 2024. This indicates maintained or modestly increased intangible value attributed to acquisitions or business reputation.

Customer Programs

The value of customer programs was constant at 3,184 million USD from 2020 through 2024, demonstrating no change in this asset category over the five years.

Customer Relationships

Customer relationships decreased significantly from 366 million USD in 2020 to 94 million USD by 2022 and remained stable thereafter. This sharp decline suggests impairment, amortization, or divestiture impacting this intangible asset.

Other Intangibles

The "Other" category showed a decline from 85 million USD in 2020 to 72 million USD in 2022 and 2023, followed by a notable increase to 156 million USD in 2024, indicating either new intangibles recognized or reclassification in the latest period.

Finite-lived Intangibles, Gross Carrying Amount

There was a gradual decrease in the gross carrying amount of finite-lived intangibles from 3,635 million USD in 2020 to a low of 3,352 million USD in 2022 and 2023, followed by a slight increase to 3,436 million USD in 2024.

Accumulated Amortization

The accumulated amortization increased steadily from -1,510 million USD in 2020 to -2,258 million USD in 2024, reflecting ongoing amortization expense reducing the net carrying amount of finite-lived intangibles.

Finite-lived Intangibles, Net Carrying Amount

Following the amortization trend, the net carrying amount of finite-lived intangibles decreased consistently from 2,125 million USD in 2020 to 1,178 million USD in 2024, highlighting the reduction in value of these assets over time.

Trademark

The trademark value remained steady at 887 million USD from 2020 through 2023, before declining to 837 million USD in 2024, indicating a possible impairment or adjustment in valuation.

Indefinite-lived Intangibles

This category mirrored the trademark trend, remaining flat at 887 million USD for four years before decreasing by 50 million USD to 837 million USD in the final year.

Acquired Intangibles

The total acquired intangibles showed a consistent downward trend, falling from 3,012 million USD in 2020 to 2,015 million USD in 2024, reflecting amortization, impairments, or disposals in this asset class.

Goodwill and Acquired Intangibles

The combined total of goodwill and acquired intangibles decreased steadily from 13,818 million USD in 2020 to 13,011 million USD in 2023, before a slight uptick to 13,082 million USD in 2024. This decline corresponds with reductions in acquired intangibles and accumulated amortization, balanced somewhat by stable or increasing goodwill.

The analysis of the financial data over the five-year period reveals several notable trends regarding the asset base and equity structure when comparing reported and goodwill-adjusted figures.

Total Assets

The reported total assets show a generally upward trajectory, increasing from approximately 50.7 billion USD in 2020 to around 55.6 billion USD in 2024. Although there is a slight decline observed in 2023 compared to 2022, the overall trend remains positive, indicating growth in the asset base.

Adjusted total assets, which exclude goodwill, follow a similar increasing pattern but at a lower scale, rising from about 39.9 billion USD in 2020 to approximately 44.6 billion USD in 2024. The adjusted figures also reflect a minor dip in 2023 relative to 2022, mirroring the reported asset trend but consistently lower due to exclusion of goodwill.

Stockholders’ Equity

Reported stockholders’ equity exhibits significant volatility during the period. It nearly doubles from around 6 billion USD in 2020 to 11 billion USD in 2021, followed by a notable decline over the subsequent years, reaching approximately 6.3 billion USD in 2024. This fluctuation suggests some major equity changes, possibly from earnings variation, dividends, share repurchases, or other comprehensive income impacts.

In contrast, the adjusted stockholders’ equity, which removes goodwill impacts, remains negative or near zero throughout the timeframe. It starts at a substantial negative balance of approximately -4.8 billion USD in 2020, approaches a marginally positive figure in 2021, then deteriorates again to -4.7 billion USD by 2024. This persistent negative equity adjusted for goodwill points to the company’s substantial intangible asset base diluting the equity when excluded and may indicate underlying concerns about tangible net worth.

Overall, the asset growth is steady albeit moderate, both on a reported and adjusted basis. Equity figures show more complexity, with reported equity rising sharply then falling back, while the goodwill-adjusted equity remains negative throughout most periods. This divergence highlights the significant role of intangible assets, especially goodwill, in the company’s balance sheet composition and equity presentation.

The analysis of the financial metrics over the periods from December 31, 2020, to December 31, 2024, reveals notable trends in turnover, leverage, and profitability both on a reported and goodwill-adjusted basis.

Total Asset Turnover

The reported total asset turnover ratio exhibits slight fluctuations, moving from 1.29 in 2020 to peak at 1.32 in 2021, followed by a modest decline to 1.25 in 2022, then a recovery to 1.29 in 2023, and a slight decrease to 1.28 in 2024. The adjusted total asset turnover shows a consistently higher level compared to the reported figures, starting at 1.64 in 2020, increasing to 1.67 in 2021, then declining to 1.57 in 2022, and subsequently rising again to 1.62 in 2023 before slightly falling to 1.59 in 2024. This pattern indicates that, after adjusting for goodwill, asset utilization remains stronger, although it similarly experiences minor fluctuations.

Financial Leverage

The reported financial leverage ratio shows significant variation over the five-year period. Initially, a high leverage of 8.43 is reported in 2020, followed by a steep decrease to 4.64 in 2021. Thereafter, leverage increases steadily to 5.71 in 2022, 7.67 in 2023, and further to 8.78 in 2024, suggesting a trend towards rising reliance on debt or other liabilities relative to equity in recent years. The adjusted financial leverage data is largely missing except for an anomalous and extremely high value of 274.38 in 2021, which may indicate a data irregularity or a significant impact of goodwill adjustments on the leverage metric for that year.

Return on Equity (ROE)

Reported ROE demonstrates a volatile pattern, starting at a very high 113.6% in 2020, sharply decreasing to 57.62% in 2021, and then slightly increasing to 61.86% in 2022. A marked rebound is observed in 2023 at 101.24%, followed by a decline to 84.26% in 2024. This suggests periods of substantial profitability relative to shareholder equity, albeit with considerable variation year-over-year. Adjusted ROE is only available for 2021, showing an extraordinarily high figure of 4325.34%, which is likely influenced by the adjusted leverage anomaly and may not provide a meaningful basis for trend analysis.

Return on Assets (ROA)

Reported ROA trends downward overall, decreasing from 13.47% in 2020 to 12.41% in 2021 and further to 10.84% in 2022, then recovering to 13.19% in 2023 before dropping again to 9.59% in 2024. The adjusted ROA values consistently exceed the reported ones, starting at 17.12% in 2020 and decreasing steadily to 13.62% in 2022, with a subsequent rise to 16.61% in 2023, followed by a decline to 11.98% in 2024. This indicates that when goodwill is adjusted out, asset profitability appears stronger but follows a similar fluctuating trajectory.

In summary, the data reflects relatively stable asset turnover with marginal fluctuations, a notable increase in financial leverage after a dip in 2021, and considerable volatility in profitability measures. Adjustments for goodwill generally yield higher turnover and profitability ratios, suggesting that goodwill has a dilutive effect on these metrics when included. However, certain figures, particularly for adjusted financial leverage and ROE, appear anomalous and should be interpreted with caution.

The financial data exhibits several notable trends over the five-year period from 2020 to 2024. Total assets, both reported and adjusted for goodwill, demonstrate a gradual increase, though at slightly different magnitudes. Reported total assets rose from US$ 50,710 million in 2020 to US$ 55,617 million in 2024, indicating a steady asset base expansion. Adjusted total assets, which exclude goodwill, followed a similar upward trajectory, increasing from US$ 39,904 million to US$ 44,550 million during the same timeframe.

Regarding total asset turnover ratios, a distinction between reported and adjusted figures is evident. The reported total asset turnover fluctuated slightly but remained relatively stable around 1.28 to 1.32, starting at 1.29 in 2020, peaking at 1.32 in 2021, and ending at 1.28 in 2024. This suggests consistent efficiency in utilizing reported assets to generate revenue over the years.

The adjusted total asset turnover ratio, which excludes goodwill from assets, maintains a higher level compared to the reported ratio, starting at 1.64 in 2020 and ending marginally lower at 1.59 in 2024. Although there is a slight decline from a peak of 1.67 in 2021, the ratio remains above 1.5, indicating relatively strong operational efficiency when goodwill is excluded.

Total Assets

Reported total assets increased moderately by approximately 9.6%, reflecting consistent asset growth. Adjusted total assets increased by roughly 11.7%, showing similar expansion but potentially less influenced by intangible asset inflation.

Asset Turnover Ratios

Reported total asset turnover remains stable, indicating the company effectively manages its asset base to sustain revenue generation.

Adjusted asset turnover is consistently higher than reported figures, suggesting that excluding goodwill improves the perceived efficiency of asset use. A slight downward trend from 2021 to 2024 calls for monitoring but does not indicate major efficiency loss.

Overall, the data portrays a company with a solid and growing asset base combined with steady operational efficiency. The adjusted figures imply that goodwill has a noteworthy impact on total asset valuation, and when excluded, the company's asset utilization appears enhanced. Management may wish to further explore the slight decline in adjusted asset turnover in recent years to ensure sustained operational performance.

The financial data reveals several notable trends over the five-year period ending in 2024. Total assets, both reported and adjusted for goodwill, demonstrate a general upward trajectory. Reported total assets increased steadily from approximately $50.7 billion in 2020 to $55.6 billion in 2024, indicating a growth in the company's asset base. Adjusted total assets follow a similar pattern, rising from about $39.9 billion to $44.6 billion, suggesting that the exclusion of goodwill still reflects asset growth albeit at a lower magnitude.

Stockholders’ equity shows a more variable pattern with distinct divergence between reported and adjusted figures. Reported equity increased sharply from $6 billion in 2020 to nearly $11 billion in 2021, but then declined over the subsequent years to roughly $6.3 billion in 2024. This volatility indicates possible fluctuations in retained earnings, share repurchases, or other equity transactions. In contrast, the adjusted equity, which removes goodwill effects, remained negative or nearly neutral throughout the period, moving from a negative $4.8 billion in 2020 to a slight positive $0.15 billion in 2021 before declining back into the negative range by 2022 and further decreasing to negative $4.7 billion in 2024. This persistent negative adjusted equity suggests that intangible assets such as goodwill heavily influence the reported equity figures and that the company’s tangible net worth may be under pressure.

Financial leverage displays substantial changes depending on whether goodwill is included. Reported financial leverage decreased significantly from a very high 8.43 ratio in 2020 to 4.64 in 2021, then gradually increased to 8.78 by 2024. This pattern could reflect changes in the balance between debt and equity financing. On the other hand, adjusted financial leverage is only available for 2021, showing an extraordinarily high ratio of 274.38, which underscores the impact of adjusted equity being close to zero or negative, amplifying leverage calculations.

Overall, the data illustrates asset growth amid declining adjusted equity and increasing leverage in recent years, which may signal rising financial risk when intangible assets are excluded. The divergence between reported and adjusted figures highlights the significant influence of goodwill on the company’s financial position, calling for careful consideration of asset quality and equity strength in future evaluations.

The data reveals significant fluctuations in both reported and adjusted financial metrics over the examined period. Reported stockholders’ equity experienced an initial increase from 6,015 million US dollars at the end of 2020 to a peak of 10,959 million US dollars in 2021, followed by a decline in subsequent years, reaching 6,333 million US dollars by the end of 2024. This indicates a substantial growth phase in 2021, succeeded by a steady decrease over the next three years.

In contrast, the adjusted stockholders’ equity figures, which consider adjustments such as goodwill, show a consistently negative trend across all periods. Starting at negative 4,791 million US dollars in 2020, the figure improved considerably to a positive 146 million US dollars in 2021. However, it reverted back to negative values thereafter, falling to negative 4,734 million US dollars by the end of 2024. This pattern suggests that once goodwill and other adjustments are accounted for, the equity position appears significantly weaker and increasingly strained over time.

Reported return on equity (ROE) demonstrates a very high level of variability but generally remains elevated. It peaked at 113.6% in 2020, dropped to 57.62% in 2021, then showed a moderate recovery with over 60% in 2022, surged again to 101.24% in 2023, before declining to 84.26% in 2024. These high ROE values suggest strong profitability relative to the reported equity base during the period, despite the medium-term decline in equity values.

The adjusted ROE is only available for one period, 2021, where it registers at an exceptionally high 4,325.34%. This singular and extraordinarily elevated figure indicates a distortion likely caused by the minimal adjusted equity base in 2021 (notably close to zero), which amplifies the ratio dramatically. The absence of this ratio in other years prevents a comparative trend analysis but highlights the sensitivity of adjusted ROE to the adjusted equity measure.

In summary, reported equity values show a peak followed by decline, while adjusted equity remains negative and deteriorates, indicating underlying financial weaknesses once adjustments are factored in. Meanwhile, the reported ROE remains elevated with marked volatility, reflecting strong profitability relative to reported equity but potentially masking risks associated with intangible asset adjustments. The adjusted ROE figure further underscores the volatility and risk given the adjusted equity's fluctuating and often negative trajectory.

The financial data reveals distinct trends in both reported and goodwill adjusted metrics over the five-year period from 2020 to 2024. Total assets and return on assets (ROA) are the primary focus areas of the analysis.

Total Assets

Reported total assets show a relatively stable pattern with slight fluctuations. The values increased marginally from 50,710 million US dollars in 2020 to 50,873 million in 2021, followed by a more noticeable rise to 52,880 million in 2022. This was succeeded by a small decrease to 52,456 million in 2023, before increasing again to 55,617 million in 2024, indicating overall growth but with some short-term volatility.

The adjusted total assets follow a very similar shape but consistently remain lower than the reported figures, reflecting the exclusion of goodwill. The adjusted values increased from 39,904 million in 2020 to 40,060 million in 2021, then grew more substantially to 42,100 million in 2022. A slight decline was observed in 2023 to 41,657 million, and the upward trend resumed reaching 44,550 million in 2024. This progression suggests the underlying asset base, excluding goodwill, is expanding steadily with minor yearly fluctuations.

Return on Assets (ROA)

Reported ROA shows a declining trend overall, starting at 13.47% in 2020 and decreasing to 9.59% by 2024. The drop was gradual from 13.47% in 2020 to 10.84% in 2022, followed by a temporary improvement to 13.19% in 2023, before a sharp decline in 2024. This indicates decreasing efficiency in generating profit from reported assets in recent years despite some short-term improvement.

The adjusted ROA, calculated on the adjusted asset base excluding goodwill, exhibits a similar downward pattern but with consistently higher returns than the reported ROA. Beginning at 17.12% in 2020, adjusted ROA declined to 13.62% in 2022, then temporarily recovered to 16.61% in 2023 before falling again to 11.98% in 2024. This suggests that the core assets excluding goodwill have generally provided better profitability, though the trend indicates reduced efficiency over time, paralleling the reported figures.

In summary, total assets have grown moderately over the observed period with minor short-term decreases, and the adjusted figures consistently reflect a smaller but steadily growing asset base. Return on assets demonstrates a decrease in asset profitability, both reported and adjusted, with only brief periods of improvement. The adjusted ROA remains higher than reported ROA, implying goodwill's impact tends to dilute asset efficiency outcomes. Overall, these patterns suggest the company is managing growth in assets while facing challenges in maintaining return efficiency on those assets.