Lockheed Martin Corp. (NYSE:LMT)

Current Ratio

The current ratio exhibits modest fluctuations throughout the observed periods. Initially, it maintained a relatively stable range around 1.36 to 1.42 from the first quarter of 2021 until the end of that year. In early 2022, a decline is evident, with the ratio decreasing to approximately 1.27 and remaining near that level through late 2022. The first half of 2023 shows a slight recovery back to the range of 1.30 to 1.36, followed by a gradual decline thereafter, reaching a low near 0.98 in the third quarter of 2025 before rebounding slightly to 1.13. This trend indicates some variability in the company's ability to cover short-term liabilities with current assets, with a weakening position towards the latter periods.

Quick Ratio

The quick ratio follows a similar pattern to the current ratio, suggesting consistent behavior in liquid assets relative to current liabilities. The ratio started near 1.09 to 1.18 through 2021, then declined marginally in 2022 to around 1.03 to 1.09. Throughout 2023, a rebound occurred with values climbing back to the range of approximately 1.07 to 1.14, followed by a decline in the last observed quarters, dipping below 1.0 and reaching as low as 0.80 in the third quarter of 2025 before a modest uptick to 0.93. This indicates a slight weakening in the company's most liquid assets in relation to current liabilities towards the end of the period but overall remaining relatively stable.

Cash Ratio

The cash ratio shows a generally lower and more volatile trend compared to the current and quick ratios, reflecting fluctuations in the company's most liquid assets (cash and cash equivalents). Starting at 0.20 in early 2021, it declined to nearly 0.11 to 0.16 during 2022. A temporary increase occurred in early to mid-2023 with values rising to 0.21, followed by a sharp decrease towards the end of 2023 and early 2024 where it reached as low as 0.09. The ratio fluctuates further, hitting a trough of 0.05 in Q3 2025 before a recovery to 0.15 at the end of 2025. The relatively low cash ratio overall indicates limited cash reserves compared to current liabilities, with notable volatility suggesting variable cash management or operational cash flow influences over time.

The quarterly financial data indicates fluctuations in the liquidity position of the company over the analyzed periods. Both current assets and current liabilities exhibit varying movements that influence the current ratio, a key indicator of short-term financial health.

Current Assets

Current assets generally show a growth trend with intermittent declines. Starting around 20,252 million US dollars, the value increased to peaks surpassing 24,000 million by mid-2023. However, some quarters experienced declines or stabilization rather than continuous growth, particularly noticeable in late 2023 and early 2024. The later periods, from mid-2024 onwards, again demonstrate an upward trajectory, reaching nearly 26,000 million by the end of the latest quarter.

Current Liabilities

Current liabilities have displayed a more consistent upward trend throughout the period. Beginning slightly above 14,700 million US dollars, liabilities rose steadily, with notable accelerations in the most recent quarters, reaching over 24,000 million by mid-2025. This increase signals growing obligations that the company needs to meet in the short term.

Current Ratio

The current ratio fluctuated around values just above 1.0, indicating moderate short-term liquidity. Initially near 1.4, the ratio trended downward over time, dipping below 1.0 in late 2025. This decline reflects the faster growth in current liabilities relative to current assets during the latter periods, suggesting a potential squeeze in liquidity.

In summary, while current assets have generally increased, the quicker rise in current liabilities has exerted downward pressure on the current ratio. The decreasing current ratio, especially falling below 1.0 at certain points, may indicate heightened liquidity risk and reduced ability to cover short-term obligations solely with current assets. Continuous monitoring of these liquidity measures is advisable to manage and mitigate potential financial strain.

Trends in Total Quick Assets

The total quick assets demonstrated a generally upward trend over the examined periods, starting at approximately 16,055 million US dollars and reaching a peak around 21,263 million US dollars. There were some fluctuations, including a notable dip near the end of 2023, but the overall movement suggests growth in liquid assets that can be quickly converted to cash.

Changes in Current Liabilities

The current liabilities increased steadily from roughly 14,717 million US dollars to about 22,974 million US dollars across the timeframe. Some quarters exhibited accelerated growth in liabilities, particularly from mid-2024 onwards, indicating a rising short-term obligation burden that may be influenced by operational or financing decisions.

Quick Ratio Analysis

The quick ratio exhibited variability across the periods, fluctuating around 1.0 initially, peaking slightly above 1.1 in mid-2023, and then declining notably below 1.0 in several subsequent quarters. Toward the latter part of the series, the quick ratio fell to a low near 0.8 before a modest recovery. This decline indicates that quick assets increasingly fell short of current liabilities, suggesting a potential tightening in liquidity or a shift in the composition of current liabilities or assets.

Overall Insights

Despite the growth in total quick assets, the more rapid increase in current liabilities has exerted downward pressure on the quick ratio, signaling that liquidity cushions have diminished in comparison to obligations due within one year. The periods when the quick ratio fell below 1.0 may warrant closer monitoring for liquidity risk. The fluctuations in quick assets, coupled with steady rises in liabilities, suggest ongoing changes in short-term financial management and possibly adjustments in operational scale or financing structure.

The financial data over the analyzed quarters reveal several noteworthy trends regarding liquidity and short-term obligations.

Total Cash Assets

The company's total cash assets exhibit notable fluctuations throughout the periods. Initially, cash assets decreased from approximately 2,933 million USD to around 2,727 million USD by September 2021, followed by a significant increase to 3,604 million USD in December 2021. Another decline occurred in early 2022, with cash assets dropping to as low as 1,775 million USD by June 2022. The following quarters saw a moderate recovery, peaking again at 3,673 million USD in June 2023. However, the latter quarters of 2023 indicated a sharp reduction in cash holdings, reaching a low point of 1,442 million USD at the end of the year. The early 2024 data show some recovery, with cash assets ranging around 2,500 to 3,150 million USD, but the trend declines again towards mid-2025, with the lowest value of 1,293 million USD recorded in June 2025, followed by a rise to 3,470 million USD at the end of the observed period.

Current Liabilities

Current liabilities have demonstrated a generally upward trend across the entire time span. Starting near 14,700 million USD in March 2021, liabilities increased steadily, surpassing 16,000 million USD in early 2022 and reaching over 17,000 million USD by mid-2023. The upward trajectory became more pronounced after mid-2023, with liabilities surging to above 18,000 million USD by mid-2024. By the third quarter of 2025, current liabilities peaked at approximately 24,354 million USD, slightly declining to 22,974 million USD by the end of 2025.

Cash Ratio

The cash ratio, a key indicator of short-term liquidity, reflects the company's ability to cover current liabilities with cash and cash equivalents. This ratio remained below 0.3 throughout all periods, signifying limited immediate liquidity. The ratio started at 0.20 in early 2021, dipped to a low of 0.09 by December 2023 and further decreased to 0.05 by June 2025, indicating a progressively weaker capacity to cover short-term obligations purely with cash. Some recovery is noted at the end of 2025, with the ratio rising back to 0.15. Overall, the cash ratio trend suggests increasing pressure on liquidity despite occasional short-term improvements.

In summary, the financial trends indicate growing current liabilities with significant volatility in cash reserves. The persistent low and occasionally declining cash ratio underscores potential liquidity challenges, particularly in later periods. These patterns warrant close monitoring to ensure effective management of short-term financial commitments.