Lockheed Martin Corp. (NYSE:LMT)

Total Asset Turnover

The reported total asset turnover ratio has remained relatively stable over the five-year period, fluctuating slightly between 1.25 and 1.32, indicating consistent efficiency in utilizing assets to generate sales. The adjusted ratio is slightly higher but follows a similar stable pattern, ranging narrowly from 1.34 to 1.38, which suggests that after adjustments the asset utilization is marginally more effective but stable as well.

Debt to Equity

There is a noticeable upward trend in both reported and adjusted debt to equity ratios. The reported ratio decreased sharply from 2.02 in 2020 to 1.07 in 2021, then increased consistently to reach 3.2 in 2024. The adjusted ratio shows a more pronounced increase from 5.17 in 2020 to 7.65 in 2024, with some volatility in intervening years. This indicates an increasing reliance on debt financing relative to equity, suggesting a rise in financial risk and leverage over the period.

Debt to Capital

Both reported and adjusted debt to capital ratios follow a general upward trajectory, though the reported measure is somewhat lower than the adjusted one. Reported debt to capital increased from 0.67 in 2020 to 0.76 in 2024, with a dip in 2021. The adjusted ratio rose from 0.84 to 0.88 during the same period, signaling a growing proportion of debt within the company's capital structure, reflecting increased leverage.

Financial Leverage

Financial leverage ratios show a strong increasing trend, with reported financial leverage rising from 8.43 in 2020 to 8.78 in 2024, peaking in 2023 at 7.67 after a dip in 2021 and 2022. The adjusted financial leverage demonstrates a more dramatic increase from 18.38 in 2020 to 18.59 in 2024, with a high of 12.72 in 2023. These levels indicate that the company is progressively relying more heavily on borrowed funds, which can amplify returns but also increase financial risk.

Net Profit Margin

The reported net profit margin shows a declining trend overall, decreasing from 10.45% in 2020 to 7.51% in 2024, with some fluctuations such as a dip to 8.69% in 2022 and a rebound in 2023. The adjusted net profit margin is more volatile, peaking notably at 16.78% in 2021 before declining sharply to 7.18% in 2024. This suggests profitability has experienced pressure in recent years, reflecting either increased costs, pricing pressures, or other operational challenges.

Return on Equity (ROE)

The reported ROE exhibits considerable fluctuations, starting very high at 113.6% in 2020, dropping to 57.62% in 2021, then rising again to over 100% in 2023 before dipping to 84.26% in 2024. The adjusted ROE follows a similar pattern but at much higher magnitude, ranging from 129.62% to 246.15%, and showing an increasing trend toward the end of the period. This indicates very strong returns on shareholders' equity but significant volatility, likely influenced by changes in leverage and profitability.

Return on Assets (ROA)

The reported ROA declines from 13.47% in 2020 to 9.59% in 2024, demonstrating a weakening in asset profitability over the period. The adjusted ROA varies more, starting at 13.39% in 2020, peaking significantly at 23.15% in 2021, and dropping steadily to 9.79% in 2024. This pattern suggests fluctuations in operational efficiency or asset utilization, with an overall downward pressure on returns from asset base in recent years.

Net Sales

Net sales exhibited an overall increasing trend from 65,398 million US dollars in 2020 to 71,043 million US dollars in 2024. Notably, there was a slight dip in 2022, where net sales declined from 67,044 million to 65,984 million, followed by a recovery and subsequent growth in the years 2023 and 2024.

Total Assets

Total assets showed a moderate upward trend across the period, growing from 50,710 million US dollars in 2020 to 55,617 million US dollars in 2024. The asset base remained fairly stable between 2021 and 2023, fluctuating slightly but ultimately increasing in 2024.

Reported Total Asset Turnover

The reported total asset turnover ratio fluctuated within a narrow band from 1.25 to 1.32 over the time span. It started at 1.29 in 2020, peaked in 2021 at 1.32, then dipped to the lowest point of 1.25 in 2022, before slightly recovering to 1.29 in 2023 and stabilizing at 1.28 in 2024. This indicates relatively consistent efficiency in using assets to generate sales, with minor variations year over year.

Adjusted Total Assets

Adjusted total assets increased steadily over the period, rising from 47,235 million US dollars in 2020 to 52,060 million US dollars in 2024. Each year recorded incremental increases, pointing toward a gradual growth in asset adjustments or revaluations contributing to a higher asset base on an adjusted basis.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio remained relatively stable, starting at 1.38 in 2020 and 2021, followed by a slight decline to 1.34 in 2022. After 2022, it showed modest improvement, reaching 1.36 in both 2023 and 2024. This consistency suggests stable asset utilization efficiency when considering the asset adjustments reflected in the adjusted figures.

The financial data exhibits several notable trends over the five-year period ending December 31, 2024. Total debt demonstrates a consistent upward trajectory, increasing from $12,169 million in 2020 to $20,270 million in 2024. This represents a significant rise in the company's leverage over the observed period.

In contrast, stockholders’ equity displays a fluctuating but generally declining trend after peaking in 2021. Specifically, equity grew from $6,015 million in 2020 to $10,959 million in 2021, then decreased progressively to $6,333 million by 2024. This reduction in equity indicates either accumulated losses, share repurchases, or dividend distributions that are not offset by earnings.

The reported debt-to-equity ratio reflects these movements with an initial decrease from 2.02 in 2020 to 1.07 in 2021, indicative of a relatively stronger equity base that year, followed by a steady increase up to 3.20 in 2024. This rising ratio highlights increased financial leverage and potential risk as debt grows faster than equity.

Adjusted figures provide further insights: adjusted total debt rises from $13,284 million in 2020 to $21,418 million in 2024, paralleling the growth in reported debt but at slightly higher absolute values. Meanwhile, adjusted total equity has a decreasing trend, starting at $2,570 million and falling to $2,800 million, with some volatility and a dip to $3,892 million in 2023 before declining again in 2024.

The adjusted debt-to-equity ratio shows a sharp increase from 5.17 in 2020 to 7.65 in 2024. This ratio is markedly higher than the reported debt-to-equity ratio across all years, suggesting that the adjusted metrics may incorporate additional liabilities or adjustments that elevate perceived leverage and risk.

Overall, the company appears to have increased its reliance on debt financing significantly, while stockholders' equity has diminished, intensifying financial leverage. The growing debt-to-equity ratios, particularly on an adjusted basis, suggest heightened financial risk and potentially greater challenges in meeting obligations or funding operations without additional equity infusion.

Total Debt

Consistently increased from $12.2 billion in 2020 to over $20 billion in 2024.

Stockholders’ Equity

Peaked in 2021 at nearly $11 billion, then steadily declined to approximately $6.3 billion by 2024.

Reported Debt to Equity Ratio

Decreased sharply in 2021 but rose steadily after, ending at 3.2 in 2024, indicating rising leverage.

Adjusted Total Debt

Increased from $13.3 billion to $21.4 billion over the period, consistently higher than reported debt.

Adjusted Total Equity

Declined overall with fluctuations, falling to $2.8 billion by 2024, implying lower adjusted capital base.

Adjusted Debt to Equity Ratio

Increased significantly from 5.17 to 7.65, indicating heightened financial risk when considering adjustments.

Total Debt

The total debt has shown a generally increasing trend over the observed period. Starting at $12,169 million in 2020, it decreased slightly to $11,676 million in 2021, followed by a significant rise to $15,547 million in 2022. This upward trajectory continued through 2023 and 2024, reaching $20,270 million, indicating an overall increase in the company's leverage.

Total Capital

Total capital has increased steadily from $18,184 million in 2020 to $26,603 million in 2024. A notable rise occurred between 2020 and 2021, with growth continuing at a moderate pace in the subsequent years. This growth suggests an expansion in the company’s financial base or capitalization.

Reported Debt to Capital Ratio

The reported debt to capital ratio fluctuated during the period. It started relatively high at 0.67 in 2020, dropped significantly to 0.52 in 2021, then climbed again, peaking at 0.76 in 2024. This pattern indicates shifts in how debt is composed relative to the capital structure, with a recent lean towards higher debt levels compared to total capital.

Adjusted Total Debt

Adjusted total debt figures mirror the pattern of total debt, rising from $13,284 million in 2020 to $21,418 million in 2024. The adjustment indicates a consistently higher debt level when factoring in additional obligations not captured in the reported total debt. The steady increase underscores growing leverage under adjusted measures.

Adjusted Total Capital

Adjusted total capital rose from $15,854 million in 2020 to $24,218 million in 2024, though the increase was less pronounced than the rise in adjusted total debt. This relative disparity suggests that while the company's capital base is expanding, it is not keeping pace proportionally with the increase in adjusted debt.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio shows an increasing trend, moving from a notably high 0.84 in 2020 down to 0.60 in 2021, before steadily rising again to reach 0.88 in 2024. This implies that, considering adjustments, the company's financial leverage is intensifying, with debt forming a larger proportion of the capital structure over time.

Overall Analysis

The data reflects a pattern of increasing leverage for the company, as both total and adjusted debt levels have risen substantially over the five-year period. While total and adjusted capital have also grown, the rise in debt appears more pronounced. This is reflected in the upward trends in the respective debt to capital ratios, notably the adjusted ratio which shows a marked increase since 2021. The movements suggest a strategic or market-driven shift towards greater borrowing, which could imply higher financial risk. The temporary dip in debt ratios in 2021 may indicate a period of deleveraging or capital restructuring, but subsequent years show a return to a higher leverage stance.

Total Assets

The total assets demonstrate a generally increasing trend over the five-year period. Starting at 50,710 million US dollars in 2020, total assets slightly rose to 50,873 million in 2021, followed by a more pronounced increase to 52,880 million in 2022. A minor decline is observed in 2023 with assets at 52,456 million, before rising again significantly to 55,617 million in 2024. This indicates overall asset growth with some volatility in 2023.

Stockholders’ Equity

Stockholders’ equity exhibits considerable fluctuations. Beginning at 6,015 million US dollars in 2020, equity nearly doubled to 10,959 million in 2021, indicating strong improvement in this period. Subsequently, there was a decline to 9,266 million in 2022 and a sharper decline in the following years, reaching 6,835 million in 2023 and further decreasing to 6,333 million in 2024. This decline after 2021 suggests reduced retained earnings, increased liabilities, or capital restructuring.

Reported Financial Leverage

The ratio of reported financial leverage starts high at 8.43 in 2020, drops significantly to 4.64 in 2021, then increases steadily over the next three years, reaching 8.78 by 2024. This pattern suggests a reduction in leverage or increased equity relative to liabilities in 2021, followed by an increasing reliance on debt or other liabilities through to 2024.

Adjusted Total Assets

Adjusted total assets follow a relatively stable upward trend. Initially at 47,235 million in 2020, assets gradually increase each year, reaching 52,060 million by 2024. The growth is steady but less pronounced compared to reported total assets, indicating adjustments potentially related to asset valuation or reclassification.

Adjusted Total Equity

The adjusted total equity fluctuates markedly. Starting at 2,570 million in 2020, it shows a sharp rise to 8,677 million in 2021, which is the highest in the period examined. Thereafter, it declines significantly each year, falling to 5,527 million in 2022, 3,892 million in 2023, and further down to 2,800 million in 2024. This mirrors the trend observed in reported equity but with even greater variation and a more pronounced downward trend after 2021.

Adjusted Financial Leverage

The adjusted financial leverage ratio shows a notable pattern of initial decrease followed by continuous increase. It starts extremely high at 18.38 in 2020, drops sharply to 5.6 in 2021, before rising consistently through 2022 to 8.89, 12.72 in 2023, and reaching the highest level of 18.59 in 2024. This suggests a significant shift in the capital structure, with reduced leverage in 2021 but a strong increase afterwards, indicating greater dependency on debt or liabilities relative to adjusted equity by the end of the period.

The analysis of the financial data reveals varied trends over the observed five-year period. Net sales show a general upward trajectory, increasing from approximately 65.4 billion US dollars in 2020 to around 71 billion US dollars in 2024, indicating growth in revenue generation.

Net Earnings

Net earnings exhibit a fluctuating pattern with a decline from 6.8 billion US dollars in 2020 to 5.7 billion in 2022, followed by a recovery to 6.9 billion in 2023 before dropping significantly to 5.3 billion in 2024. This suggests variability in profitability over the years.

Reported Net Profit Margin

The reported net profit margin shows a decreasing trend, dropping from 10.45% in 2020 to 7.51% in 2024, with a slight increase in 2023. This indicates that despite growth in sales, the company’s overall profitability relative to revenue has declined, potentially due to increased costs or other expense factors.

Adjusted Net Earnings

Adjusted net earnings peaked sharply in 2021 at 11.25 billion US dollars, significantly higher than the preceding and following years. Thereafter, they declined steadily to 5.1 billion in 2024. This peak suggests that certain adjustments or one-time factors positively influenced earnings in 2021 but did not sustain in subsequent years.

Adjusted Net Profit Margin

The adjusted net profit margin follows a similar trend with a high of 16.78% in 2021, followed by a sharp decline to 7.18% by 2024. This pattern aligns with the adjusted earnings and underscores a reduction in profitability after the 2021 peak despite revenue growth.

Overall, while sales revenues increased steadily, both reported and adjusted profitability margins declined over the period, accentuated by the volatility in earnings. This divergence suggests challenges in managing costs or other operational factors impacting net profitability despite growing sales.

Analysis of the financial data reveals several notable trends in earnings, equity, and return on equity (ROE) over the reported periods.

Net Earnings

Net earnings show a fluctuating pattern with a peak of 6,833 million US dollars in 2020, followed by declines in the next two years, reaching a low of 5,732 million in 2022. A recovery occurred in 2023 to 6,920 million, but this was followed by a drop in 2024 to 5,336 million.

Stockholders’ Equity

Stockholders' equity increased significantly from 6,015 million in 2020 to a peak of 10,959 million in 2021. However, it showed a consistent downward trend thereafter, decreasing to 9,266 million in 2022, then sharply to 6,835 million in 2023, and further down to 6,333 million in 2024.

Reported Return on Equity (ROE)

Reported ROE started extremely high at 113.6% in 2020, then declined to 57.62% in 2021. It slightly improved in 2022 to 61.86%, surged again in 2023 to 101.24%, and decreased to 84.26% in 2024. Despite volatility, the ROE remained robust overall.

Adjusted Net Earnings

Adjusted net earnings present an overall decreasing trend from 6,326 million in 2020 to 5,099 million in 2024. Notably, there is a substantial increase in 2021 to 11,247 million followed by steep declines in subsequent years. This indicates significant adjustments or extraordinary items impacting earnings in 2021 and thereafter.

Adjusted Total Equity

Adjusted total equity also shows a peak in 2021 at 8,677 million, with substantial decreases each year following, falling to 2,800 million by 2024. This reflects a contraction in adjusted equity levels over the latter periods.

Adjusted Return on Equity (ROE)

The adjusted ROE figures are markedly higher than the reported ROE across all years, indicating a different basis of calculation that heightens profitability metrics. Adjusted ROE peaked at 246.15% in 2020, then declined to around 130% in 2021 but remained elevated above 140% through 2022 and 2023, before increasing again to 182.11% in 2024. This suggests strong adjusted profitability despite fluctuations in equity base and net earnings.

In summary, the company experienced volatility in both earnings and equity levels throughout the observed periods. While net earnings recovered temporarily in 2023 after declines, stockholders’ equity consistently decreased after a peak in 2021. The ROE metrics, especially the adjusted figures, indicate persistent strong profitability but are affected by considerable fluctuations possibly due to accounting adjustments. These trends highlight a dynamic financial performance with notable variability in profitability and equity measures.

Net earnings

Net earnings exhibited a fluctuating trend over the period analyzed. Beginning at 6,833 million USD in 2020, the figure demonstrated a slight decline to 6,315 million USD in 2021 and continued to decrease to 5,732 million USD in 2022. A rebound occurred in 2023, with net earnings increasing to 6,920 million USD, followed by a significant drop to 5,336 million USD in 2024. This pattern indicates volatility in profitability, with net income shrinking overall from the start to the end of the period.

Total assets

Total assets displayed steady growth throughout the period, starting at 50,710 million USD in 2020 and gradually increasing each year except a minor decline in 2023. The asset base reached 55,617 million USD by 2024. This upward trend suggests ongoing investment and asset accumulation, supporting the company’s operational capacity and future growth potential.

Reported Return on Assets (ROA)

Reported ROA showed a downward trend coupled with some volatility. It started at 13.47% in 2020, then gradually decreased to a low of 10.84% in 2022. There was an improvement in 2023 to 13.19%, but this was followed by a sharp decline to 9.59% in 2024. The decline in ROA despite asset growth indicates diminishing profitability relative to the asset base.

Adjusted net earnings

Adjusted net earnings revealed more pronounced variability compared to reported net earnings. From 6,326 million USD in 2020, there was a marked increase to 11,247 million USD in 2021, followed by a decline to 7,958 million USD in 2022. Subsequent years saw a continued decrease to 5,642 million USD in 2023 and 5,099 million USD in 2024. The peak in 2021 suggests an exceptional event or adjustment that temporarily boosted profitability, with a trend towards normalization thereafter.

Adjusted total assets

Adjusted total assets showed consistent growth, rising from 47,235 million USD in 2020 to 52,060 million USD in 2024. This steady increase corroborates the expansion indicated by total assets, reflecting ongoing reinvestment and asset enhancement activities when adjustments are taken into account.

Adjusted Return on Assets (ROA)

Adjusted ROA started at 13.39% in 2020, surged to a high of 23.15% in 2021, then progressively declined to 16.20% in 2022, 11.40% in 2023, and 9.79% in 2024. The sharp increase in 2021 aligns with the spike in adjusted net earnings, suggesting an unusually strong performance that year. The subsequent downward trajectory indicates a reduction in efficiency or profitability relative to assets over the last three years.