Lockheed Martin Corp. (NYSE:LMT)

Net Sales

The net sales demonstrated a general upward trend from 2005 to 2024. Starting at approximately $37.2 billion in 2005, sales increased steadily, reaching over $71 billion by 2024. There were minor fluctuations, such as a slight decline in 2013 and a small dip in 2022, but the overall pattern indicates consistent growth in revenue over the two decades.

Operating Profit

Operating profit exhibited growth between 2005 and 2021, rising from roughly $3 billion to a peak of over $9.1 billion in 2021. The profit figures showed some volatility during this period. Notably, operating profit peaked in 2014 at around $5.6 billion, then increased significantly, reaching its highest level in 2021. However, after 2021, operating profit declined noticeably, dropping to about $7 billion by 2024, which suggests some challenges or increased costs impacting operational efficiency in the later years.

Net Earnings

Net earnings experienced a fluctuating pattern with growth until 2020, rising from about $1.8 billion in 2005 to a peak of approximately $6.8 billion in 2020. The data reveals considerable variability: for example, after a peak in 2011, net earnings dropped sharply in 2012, then increased again with volatility until 2021. Post-2021, net earnings dropped from $6.3 billion to $5.3 billion by 2024, mirroring the decline seen in operating profit. This suggests that profitability pressures intensified in recent years, affecting the bottom line.

Summary

Overall, the company showed strong revenue growth over the considered periods, reflecting successful sales expansion. While operating profit and net earnings generally increased over time, their volatility and recent declines after 2021 point to emerging operational and profitability challenges. The decline in both profit measures in the final years contrasts with continuing revenue growth, indicating rising costs or other factors that may be eroding profit margins.

The analysis of the financial data reveals several noteworthy trends in the company’s asset structure over the examined period.

Current Assets

Current assets showed moderate fluctuations but an overall increasing trend from 2005 through 2024. Starting at approximately 10.5 billion US dollars in 2005, current assets peaked notably in 2015 at around 16.2 billion US dollars. After slight declines in certain years, the figure continued rising again, reaching approximately 21.8 billion US dollars by 2024. This trend suggests a strengthening in the company’s liquidity position and the ability to meet short-term obligations has increased over time, despite some intermittent reductions.

Total Assets

Total assets exhibited a general upward trend with considerable growth, particularly between 2010 and 2015. Beginning at nearly 27.7 billion US dollars in 2005, total assets increased steadily to surpass 49 billion US dollars in 2015, marking a sharp expansion in the company’s asset base. Following a slight decrease and stabilization from 2015 through 2018, the assets resumed growth, reaching approximately 55.6 billion US dollars in 2024. This demonstrates ongoing investment and asset accumulation, indicative of business growth or capital expenditure expansion over the long term.

Comparative Observations

The disparity between the growth rates of current assets and total assets suggests shifting asset compositions over time. While both categories increased, total assets grew at a relatively higher scale, implying a larger proportion of non-current or long-term assets has been acquired or maintained. The overall asset growth pattern indicates solid corporate expansion and increased capacity for operations.

Current Liabilities

Current liabilities increased steadily from 9,428 million in 2005 to 19,420 million in 2024. The growth was gradual with some fluctuations, particularly a noticeable rise from 11,112 million in 2014 to 14,398 million in 2018, and then continuing upward to the highest value in 2024. This suggests an expanding short-term financial obligation profile over the analyzed period.

Total Liabilities

Data for total liabilities starts from 2008, showing an initial amount of 30,574 million, which generally increased over time with some volatility. After peaking at 47,130 million in 2017, total liabilities declined to 39,914 million in 2021 before rising again to 49,284 million in 2024. This pattern indicates fluctuations in overall debt levels but with a long-term upward trend.

Long-term Debt, Net

Long-term debt net figures reveal a mixed trend: declining from 4,784 million in 2005 to a low of 3,563 million in 2008, followed by a significant increase to 14,305 million in 2015. After 2015, a decrease is observed again until 2021, where the debt was 11,676 million; then the figures rose sharply to 20,270 million in 2024. This fluctuation suggests strategic debt management with periods of both debt reduction and expansion.

Stockholders’ Equity (Deficit)

Stockholders' equity started at 7,867 million in 2005, experiencing high volatility with a pronounced low of 39 million in 2012 and a negative figure of -683 million in 2017. Subsequent years show recovery and growth, reaching a peak of 10,959 million in 2021, followed by a decline to 6,333 million in 2024. The data reflects periods of financial difficulty and recovery in equity positions.

The analysis of the cash flow activities over the reported years reveals distinct patterns and fluctuations which provide insight into the company's financial operations and strategic decisions.

Operating Activities

Net cash provided by operating activities shows an overall upward trend from 2005 through 2021, increasing from approximately 3,194 million US dollars to a peak of 9,221 million US dollars. However, there are noticeable dips, such as in 2012 and 2018, where cash flows fell significantly compared to surrounding years, indicating possibly lower operational efficiency or timing differences in cash collections. After reaching a peak in 2021, cash inflows from operations decline moderately in subsequent years, though they remain higher than early periods.

Investing Activities

Net cash used for investing activities predominantly reflects cash outflows throughout the years, consistent with investments in capital expenditures or acquisitions. The expenditure spikes dramatically in 2015 to around -9,734 million US dollars, far exceeding other years, which suggests a significant investment or acquisition event. Other years show steady but lesser cash outflows, generally ranging between -300 to -2,000 million US dollars, highlighting recurring investments in growth or asset replacement.

Financing Activities

The net cash flows related to financing activities indicate more variability and larger magnitudes of cash movement both in and out. Early years mostly display negative cash flows associated with financing, signaling repayments or distribution activities. Notably, 2015 stands out with a positive cash flow of approximately 4,277 million US dollars, possibly due to new borrowings or equity issuance. Post-2015, the trend returns to substantial negative outflows, with increasing absolute values especially from 2019 to 2022, suggesting aggressive debt repayments, share repurchases, or dividends paid during these years. In 2024, the outflow decreases relative to previous years but remains significantly negative.

Overall, the operational cash generation shows growth and resilience over the long term despite intermittent declines. Investing activities are consistently cash-negative reflecting ongoing commitment to growth or asset maintenance, punctuated by an exceptional investment event in 2015. Financing activities demonstrate a mix of capital raising and repayments, with an emphasis on deleveraging and returning capital to shareholders after 2015. These patterns offer a composite view of a company actively managing its cash flows to support operations, growth investments, and capital structure adjustments.

Basic Earnings Per Share (EPS)

Basic EPS demonstrated a clear upward trend from 2005 through 2015, increasing from $4.15 to a peak of $17.71 in 2016. Notable volatility is observed around 2017 when the basic EPS dropped sharply to $6.96, followed by a rapid recovery to $17.74 in 2018. Subsequent years showed fluctuations but generally maintained an elevated level, reaching a high of $27.65 in 2023 before declining to $22.39 in 2024.

Diluted Earnings Per Share

The pattern for diluted EPS closely mirrors that of basic EPS with consistent growth up to 2015, peaking at $17.49 in 2016. This was followed by a significant decrease in 2017 to $6.89, then a strong rebound in 2018 to $17.59. The diluted EPS maintained elevated levels thereafter, peaking at $27.55 in 2023 before declining to $22.31 in 2024, reflecting a similar volatility pattern as basic EPS.

Dividend Per Share

Dividends per share displayed a steady and consistent increase over the entire period from 2005 to 2024. Starting at $1.05 in 2005, dividends rose annually without interruption, reaching $12.75 in 2024. This indicates a disciplined and progressively growing shareholder return policy irrespective of earnings volatility in some years.