Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Lockheed Martin Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-28), 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
The solvency profile exhibits a distinct cyclical pattern characterized by a progressive increase in leverage and financial risk from early 2022 through mid-2025, followed by a corrective phase of deleveraging through June 2026. The most significant period of risk accumulation occurred between December 2022 and June 2025, during which debt obligations grew substantially relative to equity and assets.
- Debt-to-Equity and Debt-to-Capital Ratios
- A sharp upward trajectory is observed in the debt-to-equity ratio, rising from 1.16 in March 2022 to a peak of 4.06 in June 2025. This indicates a significant shift in the capital structure toward debt financing. Similarly, the debt-to-capital ratio increased from 0.54 to a peak of 0.80 over the same period. Both metrics began a steady decline after June 2025, with the debt-to-equity ratio receding to 2.34 and the debt-to-capital ratio falling to 0.70 by June 2026, suggesting a concerted effort to reduce financial gearing.
- Debt-to-Assets and Financial Leverage
- The debt-to-assets ratio showed a more moderated but consistent increase, moving from 0.23 in March 2022 to 0.37 in June 2025, before settling at 0.33 by June 2026. This suggests that while debt increased, asset growth partially mitigated the impact on the balance sheet. Financial leverage followed a more volatile path, climbing from 5.15 to a peak of 11.04 in June 2025—more than doubling the initial leverage—before contracting to 7.12 by the end of the analyzed period.
- Interest Coverage Ratio
- An inverse correlation is evident between the leverage ratios and the interest coverage ratio. The ability to service interest payments declined steadily from a high of 14.12 in March 2022 to a low of 5.50 in June 2025. This decline reflects the dual impact of increased debt loads and potentially higher interest expenses. A recovery phase is noted in the final year, with the ratio improving to 7.68 by June 2026, aligning with the observed reduction in overall debt levels.
In summary, the period was marked by a significant expansion of the debt profile that peaked in mid-2025, which pressured the interest coverage and amplified financial leverage. However, the trend reversed in the latter half of the period, resulting in improved solvency metrics and a strengthened capacity to meet interest obligations by June 2026.
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Debt Ratios
Coverage Ratios
Debt to Equity
Lockheed Martin Corp., debt to equity calculation (quarterly data)
| Jun 28, 2026 | Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current maturities of long-term debt | —) | 168) | 1,168) | 1,669) | 3,118) | 1,643) | 643) | 142) | 142) | 168) | 168) | 168) | 283) | 115) | 118) | —) | —) | 500) | ||||||
| Long-term debt, net, excluding current maturities | 20,538) | 20,529) | 20,532) | 20,520) | 18,520) | 18,661) | 19,627) | 19,179) | 19,115) | 19,250) | 17,291) | 17,221) | 17,262) | 15,485) | 15,429) | 11,480) | 11,644) | 11,145) | ||||||
| Total debt | 20,538) | 20,697) | 21,700) | 22,189) | 21,638) | 20,304) | 20,270) | 19,321) | 19,257) | 19,418) | 17,459) | 17,389) | 17,545) | 15,600) | 15,547) | 11,480) | 11,644) | 11,645) | ||||||
| Stockholders’ equity | 8,768) | 7,489) | 6,721) | 6,181) | 5,334) | 6,683) | 6,333) | 7,200) | 6,175) | 6,650) | 6,835) | 9,274) | 9,240) | 9,646) | 9,266) | 11,966) | 11,432) | 10,002) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | 2.34 | 2.76 | 3.23 | 3.59 | 4.06 | 3.04 | 3.20 | 2.68 | 3.12 | 2.92 | 2.55 | 1.88 | 1.90 | 1.62 | 1.68 | 0.96 | 1.02 | 1.16 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 7.52 | 7.89 | 9.92 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 2.31 | 2.03 | 2.01 | 2.18 | 2.14 | 1.97 | 1.95 | 2.18 | 2.15 | 1.94 | 1.81 | 2.07 | 2.04 | 2.33 | 2.34 | 2.35 | 2.20 | ||||||
| Eaton Corp. plc | 1.02 | 1.07 | 0.51 | 0.57 | 0.59 | 0.54 | 0.50 | 0.49 | 0.51 | 0.48 | 0.49 | 0.50 | 0.52 | 0.50 | 0.51 | 0.56 | 0.59 | 0.58 | ||||||
| GE Aerospace | 1.09 | 1.12 | 1.10 | 1.11 | 0.99 | 1.02 | 1.00 | 1.06 | 1.06 | 0.69 | 0.77 | 0.73 | 0.70 | 0.71 | 0.89 | 0.97 | 0.94 | 0.86 | ||||||
| Honeywell International Inc. | 1.83 | 2.70 | 2.49 | 2.21 | 2.27 | 1.88 | 1.67 | 1.77 | 1.65 | 1.53 | 1.29 | 1.18 | 1.24 | 1.13 | 1.17 | 0.96 | 1.09 | 1.05 | ||||||
| RTX Corp. | 0.56 | 0.56 | 0.58 | 0.61 | 0.67 | 0.67 | 0.69 | 0.69 | 0.71 | 0.71 | 0.73 | 0.51 | 0.49 | 0.47 | 0.44 | 0.48 | 0.45 | 0.43 | ||||||
Based on: 10-Q (reporting date: 2026-06-28), 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q2 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 20,538 ÷ 8,768 = 2.34
2 Click competitor name to see calculations.
The solvency profile demonstrates a significant expansion of leverage between March 2022 and March 2025, followed by a period of gradual improvement in the debt-to-equity position through June 2026. This trend is characterized by a steady increase in total debt coupled with a period of equity contraction, leading to a heightened risk profile that peaked in early 2025.
- Total Debt Trends
- Total debt exhibited a consistent upward trajectory for the majority of the analyzed period. Starting at 11,645 million USD in March 2022, liabilities rose steadily, with a notable increase occurring between September and December 2022. Debt levels peaked at 22,189 million USD in September 2025 before initiating a moderate decline to 20,538 million USD by June 2026.
- Stockholders' Equity Volatility
- Equity levels showed significant fluctuation and an overall downward trend during the mid-period. After an initial rise to 11,966 million USD in September 2022, equity experienced a sustained decline, reaching a minimum of 5,334 million USD in March 2025. A recovery phase followed this trough, with equity increasing to 8,768 million USD by June 2026.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio reflects the combined impact of rising debt and falling equity. The ratio increased from 1.16 in March 2022 to a peak of 4.06 in March 2025, indicating a substantial shift toward debt-based financing. Following this peak, the ratio trended downward to 2.34 by June 2026, driven primarily by the recovery in stockholders' equity and a slight reduction in total debt.
The convergence of these factors suggests a strategic or operational period of high leverage that culminated in the first quarter of 2025. The subsequent movement indicates a transition toward a more balanced capital structure, although the leverage ratio remains significantly higher than the levels observed at the beginning of the analysis period.
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Debt to Capital
Lockheed Martin Corp., debt to capital calculation (quarterly data)
| Jun 28, 2026 | Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current maturities of long-term debt | —) | 168) | 1,168) | 1,669) | 3,118) | 1,643) | 643) | 142) | 142) | 168) | 168) | 168) | 283) | 115) | 118) | —) | —) | 500) | ||||||
| Long-term debt, net, excluding current maturities | 20,538) | 20,529) | 20,532) | 20,520) | 18,520) | 18,661) | 19,627) | 19,179) | 19,115) | 19,250) | 17,291) | 17,221) | 17,262) | 15,485) | 15,429) | 11,480) | 11,644) | 11,145) | ||||||
| Total debt | 20,538) | 20,697) | 21,700) | 22,189) | 21,638) | 20,304) | 20,270) | 19,321) | 19,257) | 19,418) | 17,459) | 17,389) | 17,545) | 15,600) | 15,547) | 11,480) | 11,644) | 11,645) | ||||||
| Stockholders’ equity | 8,768) | 7,489) | 6,721) | 6,181) | 5,334) | 6,683) | 6,333) | 7,200) | 6,175) | 6,650) | 6,835) | 9,274) | 9,240) | 9,646) | 9,266) | 11,966) | 11,432) | 10,002) | ||||||
| Total capital | 29,306) | 28,186) | 28,421) | 28,370) | 26,972) | 26,987) | 26,603) | 26,521) | 25,432) | 26,068) | 24,294) | 26,663) | 26,785) | 25,246) | 24,813) | 23,446) | 23,076) | 21,647) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 0.70 | 0.73 | 0.76 | 0.78 | 0.80 | 0.75 | 0.76 | 0.73 | 0.76 | 0.74 | 0.72 | 0.65 | 0.66 | 0.62 | 0.63 | 0.49 | 0.50 | 0.54 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 0.88 | 0.89 | 0.91 | 1.18 | 1.07 | 1.07 | 1.08 | 1.69 | 1.45 | 1.55 | 1.49 | 1.47 | 1.42 | 1.39 | 1.39 | 1.45 | 1.35 | 1.36 | ||||||
| Caterpillar Inc. | — | 0.70 | 0.67 | 0.67 | 0.69 | 0.68 | 0.66 | 0.66 | 0.69 | 0.68 | 0.66 | 0.64 | 0.67 | 0.67 | 0.70 | 0.70 | 0.70 | 0.69 | ||||||
| Eaton Corp. plc | 0.50 | 0.52 | 0.34 | 0.36 | 0.37 | 0.35 | 0.33 | 0.33 | 0.34 | 0.32 | 0.33 | 0.33 | 0.34 | 0.34 | 0.34 | 0.36 | 0.37 | 0.37 | ||||||
| GE Aerospace | 0.52 | 0.53 | 0.52 | 0.53 | 0.50 | 0.50 | 0.50 | 0.51 | 0.51 | 0.41 | 0.43 | 0.42 | 0.41 | 0.41 | 0.47 | 0.49 | 0.48 | 0.46 | ||||||
| Honeywell International Inc. | 0.65 | 0.73 | 0.71 | 0.69 | 0.69 | 0.65 | 0.63 | 0.64 | 0.62 | 0.61 | 0.56 | 0.54 | 0.55 | 0.53 | 0.54 | 0.49 | 0.52 | 0.51 | ||||||
| RTX Corp. | 0.36 | 0.36 | 0.37 | 0.38 | 0.40 | 0.40 | 0.41 | 0.41 | 0.42 | 0.41 | 0.42 | 0.34 | 0.33 | 0.32 | 0.31 | 0.32 | 0.31 | 0.30 | ||||||
Based on: 10-Q (reporting date: 2026-06-28), 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,538 ÷ 29,306 = 0.70
2 Click competitor name to see calculations.
An analysis of the solvency metrics from March 2022 through June 2026 reveals a significant increase in financial leverage. The capital structure has shifted toward a heavier reliance on debt, as total debt grew at a faster rate than total capital during the majority of the period.
- Total Debt Trajectory
- Total debt exhibited a strong upward trend, rising from 11,645 million US$ in March 2022 to a peak of 22,189 million US$ in September 2025. A notable increase occurred between September 2022 and December 2022, where debt jumped from 11,480 million US$ to 15,547 million US$. Following this spike, debt continued to climb steadily, eventually stabilizing and slightly declining to 20,538 million US$ by June 2026.
- Total Capital Evolution
- Total capital demonstrated a gradual and consistent increase, moving from 21,647 million US$ in March 2022 to 29,306 million US$ by June 2026. While capital growth was steady, it did not keep pace with the rapid expansion of total debt, particularly during the 2023 to 2025 window.
- Debt to Capital Ratio Analysis
- The debt to capital ratio reflects an increase in the company's solvency risk profile. The ratio began at 0.54 in March 2022, dipped to a low of 0.49 in September 2022, and then rose sharply to 0.63 by December 2022. A long-term upward trend followed, with the ratio reaching a peak of 0.80 in June 2025. In the final three quarters of the analyzed period, a moderate downward correction is observed, with the ratio receding to 0.70 by June 2026, suggesting a recent effort to deleverage or a relative increase in equity components of the capital base.
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Debt to Assets
Lockheed Martin Corp., debt to assets calculation (quarterly data)
| Jun 28, 2026 | Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current maturities of long-term debt | —) | 168) | 1,168) | 1,669) | 3,118) | 1,643) | 643) | 142) | 142) | 168) | 168) | 168) | 283) | 115) | 118) | —) | —) | 500) | ||||||
| Long-term debt, net, excluding current maturities | 20,538) | 20,529) | 20,532) | 20,520) | 18,520) | 18,661) | 19,627) | 19,179) | 19,115) | 19,250) | 17,291) | 17,221) | 17,262) | 15,485) | 15,429) | 11,480) | 11,644) | 11,145) | ||||||
| Total debt | 20,538) | 20,697) | 21,700) | 22,189) | 21,638) | 20,304) | 20,270) | 19,321) | 19,257) | 19,418) | 17,459) | 17,389) | 17,545) | 15,600) | 15,547) | 11,480) | 11,644) | 11,645) | ||||||
| Total assets | 62,450) | 59,238) | 59,840) | 60,276) | 58,870) | 56,669) | 55,617) | 55,520) | 55,076) | 54,963) | 52,456) | 56,666) | 56,978) | 54,622) | 52,880) | 52,030) | 51,758) | 51,510) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.33 | 0.35 | 0.36 | 0.37 | 0.37 | 0.36 | 0.36 | 0.35 | 0.35 | 0.35 | 0.33 | 0.31 | 0.31 | 0.29 | 0.29 | 0.22 | 0.22 | 0.23 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 0.28 | 0.29 | 0.32 | 0.36 | 0.34 | 0.34 | 0.34 | 0.42 | 0.41 | 0.36 | 0.38 | 0.39 | 0.39 | 0.41 | 0.42 | 0.42 | 0.42 | 0.43 | ||||||
| Caterpillar Inc. | — | 0.45 | 0.44 | 0.44 | 0.45 | 0.45 | 0.44 | 0.44 | 0.45 | 0.45 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | ||||||
| Eaton Corp. plc | 0.37 | 0.38 | 0.24 | 0.26 | 0.27 | 0.26 | 0.24 | 0.24 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.28 | 0.27 | ||||||
| GE Aerospace | 0.15 | 0.16 | 0.16 | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.17 | 0.17 | 0.18 | 0.18 | ||||||
| Honeywell International Inc. | 0.44 | 0.50 | 0.47 | 0.46 | 0.47 | 0.44 | 0.41 | 0.42 | 0.40 | 0.38 | 0.33 | 0.33 | 0.34 | 0.32 | 0.31 | 0.28 | 0.31 | 0.31 | ||||||
| RTX Corp. | 0.21 | 0.22 | 0.22 | 0.23 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.22 | 0.22 | 0.21 | 0.20 | 0.21 | 0.20 | 0.20 | ||||||
Based on: 10-Q (reporting date: 2026-06-28), 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,538 ÷ 62,450 = 0.33
2 Click competitor name to see calculations.
The analysis of solvency indicators over the period from March 2022 to June 2026 reveals a phase of strategic leverage expansion followed by a period of stabilization. The general trend shows a marked increase in the reliance on debt relative to the asset base, peaking in 2025 before exhibiting a corrective downward trend in the first half of 2026.
- Total Debt Trajectory
- A significant escalation in total debt is observed, beginning with a baseline of 11.65 billion USD in early 2022. A notable surge occurred between September and December 2022, where debt rose from 11.48 billion USD to 15.55 billion USD. This upward trajectory continued steadily over the following three years, reaching a peak of 22.19 billion USD in September 2025, before decelerating to 20.54 billion USD by June 2026.
- Total Asset Growth
- Total assets demonstrated a generally positive growth trend, rising from 51.51 billion USD in March 2022 to 62.45 billion USD by June 2026. A temporary contraction is noted in December 2023, where assets dipped to 52.46 billion USD. However, subsequent quarters showed consistent recovery and expansion, contributing to a broadened asset base over the analyzed timeframe.
- Debt to Assets Ratio Analysis
- The debt to assets ratio mirrors the growth in liabilities, increasing from a low of 0.22 in mid-2022 to a peak of 0.37 in mid-2025. This indicates that for the majority of the period, debt accumulation outpaced asset growth. However, the ratio began to decline in late 2025 and early 2026, concluding at 0.33. This movement suggests a strategic shift toward deleveraging or a higher rate of asset accumulation relative to new debt issuance in the final quarters.
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Financial Leverage
Lockheed Martin Corp., financial leverage calculation (quarterly data)
| Jun 28, 2026 | Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Total assets | 62,450) | 59,238) | 59,840) | 60,276) | 58,870) | 56,669) | 55,617) | 55,520) | 55,076) | 54,963) | 52,456) | 56,666) | 56,978) | 54,622) | 52,880) | 52,030) | 51,758) | 51,510) | ||||||
| Stockholders’ equity | 8,768) | 7,489) | 6,721) | 6,181) | 5,334) | 6,683) | 6,333) | 7,200) | 6,175) | 6,650) | 6,835) | 9,274) | 9,240) | 9,646) | 9,266) | 11,966) | 11,432) | 10,002) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | 7.12 | 7.91 | 8.90 | 9.75 | 11.04 | 8.48 | 8.78 | 7.71 | 8.92 | 8.27 | 7.67 | 6.11 | 6.17 | 5.66 | 5.71 | 4.35 | 4.53 | 5.15 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 27.19 | 27.52 | 30.85 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 5.12 | 4.62 | 4.54 | 4.84 | 4.70 | 4.50 | 4.45 | 4.86 | 4.75 | 4.49 | 4.24 | 4.68 | 4.61 | 5.16 | 5.19 | 5.16 | 4.82 | ||||||
| Eaton Corp. plc | 2.77 | 2.79 | 2.12 | 2.16 | 2.18 | 2.12 | 2.08 | 2.05 | 2.05 | 2.00 | 2.02 | 2.03 | 2.05 | 2.04 | 2.06 | 2.14 | 2.15 | 2.12 | ||||||
| GE Aerospace | 7.24 | 7.11 | 6.97 | 6.82 | 6.55 | 6.45 | 6.37 | 6.71 | 6.62 | 5.49 | 5.96 | 5.47 | 5.23 | 5.20 | 5.16 | 5.75 | 5.35 | 4.92 | ||||||
| Honeywell International Inc. | 4.17 | 5.44 | 5.30 | 4.82 | 4.87 | 4.31 | 4.04 | 4.22 | 4.09 | 3.99 | 3.88 | 3.56 | 3.60 | 3.54 | 3.73 | 3.40 | 3.55 | 3.45 | ||||||
| RTX Corp. | 2.62 | 2.57 | 2.62 | 2.61 | 2.68 | 2.68 | 2.71 | 2.70 | 2.73 | 2.65 | 2.71 | 2.33 | 2.24 | 2.22 | 2.19 | 2.25 | 2.26 | 2.20 | ||||||
Based on: 10-Q (reporting date: 2026-06-28), 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q2 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 62,450 ÷ 8,768 = 7.12
2 Click competitor name to see calculations.
The financial trajectory from March 2022 through June 2026 is characterized by a period of increasing financial risk followed by a corrective phase of deleveraging. While the asset base expanded steadily, the volatility in stockholders' equity drove significant fluctuations in the company's financial leverage.
- Asset Base Expansion
- Total assets maintained a consistent growth trend, increasing from 51,510 million US$ in March 2022 to 62,450 million US$ by June 2026. This steady upward movement indicates a continuous expansion of the company's total resource footprint over the analyzed period.
- Equity Erosion and Recovery
- Stockholders' equity exhibited a prolonged decline for much of the period, dropping from 10,002 million US$ in March 2022 to a minimum of 5,334 million US$ in June 2025. Following this trough, a recovery trend emerged, with equity increasing to 8,768 million US$ by June 2026, suggesting a restoration of the internal capital base.
- Financial Leverage Dynamics
- The financial leverage ratio experienced a sharp ascent, rising from 5.15 in March 2022 to a peak of 11.04 in March 2025. This escalation was primarily driven by the reduction in stockholders' equity relative to the growth in assets, indicating a heightened reliance on external financing or liabilities. In the subsequent quarters, a consistent downward trend is observed, with the leverage ratio compressing to 7.12 by June 2026, reflecting a shift toward a more conservative solvency profile.
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Interest Coverage
Lockheed Martin Corp., interest coverage calculation (quarterly data)
| Jun 28, 2026 | Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net earnings | 1,836) | 1,488) | 1,344) | 1,619) | 342) | 1,712) | 527) | 1,623) | 1,641) | 1,545) | 1,866) | 1,684) | 1,681) | 1,689) | 1,912) | 1,778) | 309) | 1,733) | ||||||
| Add: Income tax expense | 342) | 286) | 187) | 319) | 75) | 324) | (8) | 295) | 307) | 290) | 279) | 269) | 325) | 305) | 278) | 321) | 21) | 328) | ||||||
| Add: Interest expense | 266) | 269) | 290) | 286) | 274) | 268) | 264) | 256) | 261) | 255) | 254) | 237) | 223) | 202) | 202) | 145) | 141) | 135) | ||||||
| Earnings before interest and tax (EBIT) | 2,444) | 2,043) | 1,821) | 2,224) | 691) | 2,304) | 783) | 2,174) | 2,209) | 2,090) | 2,399) | 2,190) | 2,229) | 2,196) | 2,392) | 2,244) | 471) | 2,196) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Interest coverage1 | 7.68 | 6.06 | 6.30 | 5.50 | 5.60 | 7.12 | 7.00 | 8.65 | 8.83 | 9.19 | 9.84 | 10.42 | 11.74 | 10.58 | 11.72 | 13.31 | 10.88 | 14.12 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 2.08 | 1.96 | 1.95 | -2.41 | -2.72 | -3.10 | -3.48 | -2.16 | -0.23 | 0.21 | 0.18 | -0.06 | -0.85 | -0.53 | -0.98 | -2.54 | -1.40 | -1.31 | ||||||
| Caterpillar Inc. | — | 24.64 | 24.21 | 25.46 | 25.81 | 26.67 | 27.21 | 26.28 | 26.88 | 27.68 | 26.66 | 24.81 | 23.80 | 21.33 | 20.80 | 22.05 | 20.08 | 19.10 | ||||||
| Eaton Corp. plc | 11.86 | 16.48 | 21.46 | 23.55 | 28.05 | 36.65 | 36.12 | 40.37 | 37.97 | 32.04 | 26.34 | 22.25 | 19.68 | 19.85 | 21.22 | 21.33 | 24.31 | 22.57 | ||||||
| GE Aerospace | 12.27 | 12.53 | 12.86 | 12.56 | 11.46 | 9.44 | 8.73 | 7.93 | 6.25 | 6.11 | 10.12 | 9.41 | 8.49 | 6.73 | 1.88 | -1.66 | -1.16 | -1.49 | ||||||
| Honeywell International Inc. | 8.13 | 4.32 | 5.07 | 6.61 | 6.54 | 7.24 | 7.82 | 8.40 | 9.33 | 9.89 | 10.36 | 10.68 | 12.45 | 14.34 | 16.41 | 20.95 | 20.60 | 21.35 | ||||||
Based on: 10-Q (reporting date: 2026-06-28), 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (2,444 + 2,043 + 1,821 + 2,224)
÷ (266 + 269 + 290 + 286)
= 7.68
2 Click competitor name to see calculations.
The analysis of interest coverage from March 2022 through June 2026 reveals a progressive decline in the capacity to service interest obligations. While a positive coverage ratio is maintained throughout the period, the overall trend indicates a contraction in the safety margin between operating earnings and interest costs.
- Interest Expense Trends
- A consistent upward trajectory is observed in interest expenses, which increased from 135 million US dollars in March 2022 to a peak of 290 million US dollars in December 2025. This sustained growth suggests an increase in the cost of debt or an expansion of the company's total borrowings over the period.
- Earnings Before Interest and Tax (EBIT) Performance
- EBIT demonstrates significant volatility. While earnings frequently stabilize between 2.0 billion and 2.4 billion US dollars, substantial quarterly declines are evident in June 2022, December 2024, and June 2025. These intermittent drops in operating income create periodic pressure on the solvency position.
- Interest Coverage Ratio Analysis
- The interest coverage ratio shows a marked downward trend, falling from a high of 14.12 in March 2022 to a low of 5.50 in June 2025. Although the ratio recovered slightly to 7.68 by June 2026, the overall trajectory indicates that the company's ability to cover interest payments from operating profits has weakened relative to the start of the period, primarily driven by the combination of rising interest expenses and inconsistent EBIT.
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