Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Ratios (Summary)
Debt to Equity
Debt to Capital
Debt to Assets
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Lockheed Martin Corp., debt and solvency ratios

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Debt Ratios
	Debt to equity
	Debt to capital
	Debt to assets
	Financial leverage
	Coverage Ratios
	Interest coverage
	Fixed charge coverage

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

Ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Lockheed Martin Corp.’s debt to equity ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Lockheed Martin Corp.’s debt to capital ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Lockheed Martin Corp.’s debt to assets ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Lockheed Martin Corp.’s financial leverage ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Lockheed Martin Corp.’s interest coverage ratio improved from 2016 to 2017 and from 2017 to 2018.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Lockheed Martin Corp.’s fixed charge coverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Lockheed Martin Corp., debt to equity calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Current maturities of long-term debt and commercial paper
	Long-term debt, net, excluding current maturities
	Total debt

	Stockholders’ equity (deficit)
	Ratio
	Debt to equity¹
	Benchmarks
	Debt to Equity, Competitors
	Boeing Co.
	General Dynamics Corp.
	Northrop Grumman Corp.
	Raytheon Co.
	United Technologies Corp.
	Debt to Equity, Sector
	Aerospace & Defense
	Debt to Equity, Industry
	Industrials

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

2018 Calculations

¹ Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
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Ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Lockheed Martin Corp.’s debt to equity ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Lockheed Martin Corp., debt to capital calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Current maturities of long-term debt and commercial paper
	Long-term debt, net, excluding current maturities
	Total debt
	Stockholders’ equity (deficit)
	Total capital
	Ratio
	Debt to capital¹
	Benchmarks
	Debt to Capital, Competitors
	Boeing Co.
	General Dynamics Corp.
	Northrop Grumman Corp.
	Raytheon Co.
	United Technologies Corp.
	Debt to Capital, Sector
	Aerospace & Defense
	Debt to Capital, Industry
	Industrials

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

2018 Calculations

¹ Debt to capital = Total debt ÷ Total capital
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Ratio	Description	The company
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Lockheed Martin Corp.’s debt to capital ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Lockheed Martin Corp., debt to assets calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Current maturities of long-term debt and commercial paper
	Long-term debt, net, excluding current maturities
	Total debt

	Total assets
	Ratio
	Debt to assets¹
	Benchmarks
	Debt to Assets, Competitors
	Boeing Co.
	General Dynamics Corp.
	Northrop Grumman Corp.
	Raytheon Co.
	United Technologies Corp.
	Debt to Assets, Sector
	Aerospace & Defense
	Debt to Assets, Industry
	Industrials

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

2018 Calculations

¹ Debt to assets = Total debt ÷ Total assets
= hidden ÷ hidden = hidden

Ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Lockheed Martin Corp.’s debt to assets ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Lockheed Martin Corp., financial leverage calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Total assets
	Stockholders’ equity (deficit)
	Ratio
	Financial leverage¹
	Benchmarks
	Financial Leverage, Competitors
	Boeing Co.
	General Dynamics Corp.
	Northrop Grumman Corp.
	Raytheon Co.
	United Technologies Corp.
	Financial Leverage, Sector
	Aerospace & Defense
	Financial Leverage, Industry
	Industrials

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

2018 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
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Ratio	Description	The company
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Lockheed Martin Corp.’s financial leverage ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Lockheed Martin Corp., interest coverage calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Net earnings
	Less: Net earnings from discontinued operations
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Ratio
	Interest coverage¹
	Benchmarks
	Interest Coverage, Competitors
	Boeing Co.
	General Dynamics Corp.
	Northrop Grumman Corp.
	Raytheon Co.
	United Technologies Corp.
	Interest Coverage, Sector
	Aerospace & Defense
	Interest Coverage, Industry
	Industrials

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

2018 Calculations

¹ Interest coverage = EBIT ÷ Interest expense
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Ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Lockheed Martin Corp.’s interest coverage ratio improved from 2016 to 2017 and from 2017 to 2018.

Lockheed Martin Corp., fixed charge coverage calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Net earnings
	Less: Net earnings from discontinued operations
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Add: Rental expense under operating leases
	Earnings before fixed charges and tax

	Interest expense
	Rental expense under operating leases
	Fixed charges
	Ratio
	Fixed charge coverage¹
	Benchmarks
	Fixed Charge Coverage, Competitors
	Boeing Co.
	General Dynamics Corp.
	Northrop Grumman Corp.
	Raytheon Co.
	United Technologies Corp.
	Fixed Charge Coverage, Sector
	Aerospace & Defense
	Fixed Charge Coverage, Industry
	Industrials

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

2018 Calculations

¹ Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= hidden ÷ hidden = hidden

Ratio	Description	The company
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Lockheed Martin Corp.’s fixed charge coverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

	Lockheed Martin Corp.	Other companies (not purchased previously)
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Analysis
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Lockheed Martin Corp. (LMT)

Long-term Debt and Solvency Analysis

Ratios (Summary)

Debt to Equity

Debt to Capital

Debt to Assets

Financial Leverage

Interest Coverage

Fixed Charge Coverage