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: 2026-03-29), 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 period of increasing leverage and a corresponding decline in interest coverage between March 2022 and March 2026, with a notable peak in leverage occurring in mid-2025.
- Equity and Capital Leverage
- A significant upward trend in the debt to equity ratio is observed, rising from 1.16 in March 2022 to a peak of 4.06 in June 2025. While a moderate reduction followed, ending at 2.76 in March 2026, the overall level of debt relative to equity remained substantially higher than at the start of the period. Similarly, the debt to capital ratio trended upward from 0.54 to a high of 0.80 in June 2025 before settling at 0.73.
- Asset-Based Solvency and Financial Leverage
- Debt to assets remained relatively stable but showed a gradual increase, moving from 0.23 in early 2022 to a peak of 0.37 in June 2025, eventually closing at 0.35. Financial leverage followed a more aggressive trajectory, increasing from 5.15 to a maximum of 11.04 in June 2025. This peak indicates a period of maximum reliance on debt to finance assets, followed by a contraction to 7.91 by March 2026.
- Interest Servicing Capacity
- A consistent inverse correlation is evident between leverage and interest coverage. The interest coverage ratio declined steadily from a high of 14.12 in March 2022 to a low of 5.50 in June 2025. Although a slight recovery to 6.06 was noted by March 2026, the capacity to cover interest expenses from operating earnings diminished significantly over the analyzed timeframe.
The combined data suggests a strategic increase in debt utilization that peaked in the second quarter of 2025, which subsequently pressured the company's ability to service interest payments before a partial deleveraging occurred in the final three quarters.
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Debt Ratios
Coverage Ratios
Debt to Equity
Lockheed Martin Corp., debt to equity calculation (quarterly data)
| 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 | 20,529) | 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 | 20,697) | 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 | 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 | 2.76 | 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. | 7.89 | 9.92 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 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 | — | 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 | 1.12 | 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. | 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 | 0.58 | 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: 2026-03-29), 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 Q1 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 20,697 ÷ 7,489 = 2.76
2 Click competitor name to see calculations.
An analysis of the solvency metrics reveals a significant increase in financial leverage over the observed period. The company transitioned from a relatively balanced capital structure in early 2022 to a highly leveraged position by mid-2025, followed by a moderate correction toward the end of the period.
- Total Debt Trends
- Total debt exhibited a consistent upward trajectory, rising from 11,645 million US$ in March 2022 to a peak of 22,189 million US$ in September 2025. A notable acceleration occurred between September and December 2022, where debt increased by approximately 35%. Following the peak in late 2025, a gradual reduction is observed, with debt descending to 20,697 million US$ by March 2026.
- Stockholders' Equity Trends
- Equity levels demonstrated significant volatility and an overall downward trend for the majority of the period. After reaching a peak of 11,966 million US$ in September 2022, equity experienced a steady decline, reaching a low of 5,334 million US$ in June 2025. A recovery phase emerged in the final three quarters, with equity rising back to 7,489 million US$ by March 2026.
- Debt to Equity Ratio Analysis
- The debt to equity ratio reflects the compounding effect of rising debt and shrinking equity. The ratio reached its lowest point of 0.96 in September 2022, indicating a period where equity slightly exceeded total debt. Subsequently, the ratio expanded rapidly, exceeding 3.0 in June 2024 and peaking at 4.06 in June 2025. This indicates a period of intensified financial risk and increased reliance on borrowed capital. By March 2026, the ratio moderated to 2.76, driven by the simultaneous reduction in total debt and the recovery of stockholders' equity.
The overall solvency profile indicates a strategic or operational shift that necessitated higher leverage between 2023 and 2025. While the peak leverage in mid-2025 represented a substantial increase in financial risk, the subsequent trend suggests a movement toward deleveraging and capital structure stabilization.
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Debt to Capital
Lockheed Martin Corp., debt to capital calculation (quarterly data)
| 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 | 20,529) | 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 | 20,697) | 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 | 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 | 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 | 0.73 | 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. | 0.89 | 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. | — | 0.67 | 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 | — | 0.34 | 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 | 0.53 | 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. | 0.73 | 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 | 0.37 | 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: 2026-03-29), 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 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,697 ÷ 28,186 = 0.73
2 Click competitor name to see calculations.
The solvency profile demonstrates a consistent increase in financial leverage over the period from March 2022 to March 2026. A sustained upward trend in the proportion of debt relative to total capital indicates a strategic shift toward higher leverage to support the organization's capital structure.
- Total Debt Progression
- Total debt exhibited a significant upward trajectory, increasing from $11,645 million in March 2022 to a peak of $22,189 million in September 2025. A substantial acceleration in borrowing is evident between September 2022 and December 2022, where debt increased by approximately $4 billion within a single quarter. A moderate decline is observed in the final two quarters of the period, with debt falling to $20,697 million by March 2026.
- Total Capital Trends
- Total capital grew from $21,647 million to $28,186 million. The growth was generally steady, though a notable contraction occurred in December 2023, when capital dipped to $24,294 million. Following this trough, capital levels recovered and peaked at $28,421 million in December 2025.
- Debt to Capital Ratio Analysis
- The debt to capital ratio rose from 0.54 in March 2022 to a peak of 0.80 in June 2025. The ratio remained relatively stable around 0.49 to 0.54 during the first three quarters of 2022 before jumping to 0.63 in December 2022. From 2023 through mid-2025, the ratio continued a gradual ascent, reflecting that debt grew at a faster rate than total capital. A slight corrective trend is observed toward the end of the period, with the ratio moderating to 0.73 by March 2026.
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Debt to Assets
Lockheed Martin Corp., debt to assets calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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 | 20,529) | 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 | 20,697) | 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 | 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 | 0.35 | 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. | 0.29 | 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. | — | 0.44 | 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 | — | 0.24 | 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 | 0.16 | 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. | 0.50 | 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. | 0.22 | 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: 2026-03-29), 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 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,697 ÷ 59,238 = 0.35
2 Click competitor name to see calculations.
An analysis of solvency metrics from March 2022 through March 2026 reveals a progressive increase in financial leverage. The debt-to-assets ratio transitioned from a period of stability in early 2022 to a sustained upward trend, peaking in mid-2025 before experiencing a slight moderation in early 2026.
- Total Debt Trajectory
- Total debt exhibited significant growth, rising from 11,645 million USD in March 2022 to a peak of 22,189 million USD in September 2025. A substantial increase is noted in the fourth quarter of 2022, where debt levels jumped from 11,480 million USD to 15,547 million USD. Following this spike, debt continued to climb steadily until a slight reduction occurred between September 2025 and March 2026, ending at 20,697 million USD.
- Total Asset Growth
- Assets grew from 51,510 million USD in March 2022 to a peak of 60,276 million USD in September 2025. While the overall trend was positive, asset growth was less aggressive than debt accumulation. A notable contraction in total assets occurred in December 2023, dropping to 52,456 million USD from 56,666 million USD in the previous quarter, which contributed to a momentary spike in the solvency ratio.
- Debt-to-Assets Ratio Analysis
- The debt-to-assets ratio remained consistent at 0.22 to 0.23 during the first three quarters of 2022. A sharp increase to 0.29 was recorded in December 2022, marking the beginning of a long-term upward trend. The ratio climbed incrementally to 0.37 by June 2025. This indicates that by mid-2025, debt financed a larger portion of the asset base than at the start of the period. A minor reversal is observed in the final two quarters of the analysis, with the ratio receding to 0.35 by March 2026.
The synchronization of the peak debt levels and peak asset values in September 2025 suggests a period of maximum capital expansion. The subsequent decline in both metrics through March 2026 indicates a shift toward deleveraging or a reduction in the overall balance sheet size.
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Financial Leverage
Lockheed Martin Corp., financial leverage calculation (quarterly data)
| 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 | 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 | 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 | 7.91 | 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. | 27.52 | 30.85 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 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 | — | 2.12 | 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 | 7.11 | 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. | 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. | 2.57 | 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: 2026-03-29), 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 Q1 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 59,238 ÷ 7,489 = 7.91
2 Click competitor name to see calculations.
An analysis of the solvency metrics indicates a progressive increase in financial leverage over the observed period, driven by a diverging trend between asset growth and stockholders' equity.
- Total Asset Trajectory
- Total assets demonstrated a general upward trajectory, increasing from US$ 51,510 million in March 2022 to a peak of US$ 60,276 million in September 2025. This expansion reflects a steady growth in the company's resource base, followed by a slight contraction to US$ 59,238 million by March 2026.
- Stockholders' Equity Fluctuations
- Stockholders' equity exhibited a significant downward trend for the majority of the analyzed timeframe. After reaching a peak of US$ 11,966 million in September 2022, equity levels declined to a low of US$ 5,334 million in June 2025. A recovery trend emerged in the final quarters, with equity rising to US$ 7,489 million by March 2026.
- Financial Leverage Analysis
- The financial leverage ratio rose from 5.15 in March 2022 to a peak of 11.04 in June 2025. This increase suggests a heightened reliance on debt or other liabilities to finance asset growth, as the equity base diminished. However, the leverage ratio began to moderate in the final three quarters, decreasing to 7.91 by March 2026, which aligns with the observed recovery in stockholders' equity during that period.
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Interest Coverage
Lockheed Martin Corp., interest coverage calculation (quarterly data)
| 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 | 1,488) | 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 | 286) | 187) | 319) | 75) | 324) | (8) | 295) | 307) | 290) | 279) | 269) | 325) | 305) | 278) | 321) | 21) | 328) | ||||||
| Add: Interest expense | 269) | 290) | 286) | 274) | 268) | 264) | 256) | 261) | 255) | 254) | 237) | 223) | 202) | 202) | 145) | 141) | 135) | ||||||
| Earnings before interest and tax (EBIT) | 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 | 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. | 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. | — | 24.21 | 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 | — | 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 | 12.53 | 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. | 4.32 | 5.07 | 6.80 | 6.74 | 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: 2026-03-29), 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 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= (2,043 + 1,821 + 2,224 + 691)
÷ (269 + 290 + 286 + 274)
= 6.06
2 Click competitor name to see calculations.
Analysis of solvency trends indicates a systematic decline in interest coverage over the period from March 2022 to March 2026. This deterioration is characterized by a combination of steadily increasing borrowing costs and intermittent volatility in operating earnings.
- Interest Expense Trajectory
- A persistent upward trend is observed in interest expenses, which rose from 135 million US dollars in March 2022 to 269 million US dollars by March 2026. The increase is nearly continuous, reaching a peak of 290 million US dollars in December 2025, suggesting a higher cost of debt or an increase in the total volume of interest-bearing liabilities.
- Earnings Before Interest and Tax (EBIT) Performance
- EBIT exhibits significant quarterly volatility. While the figure frequently maintains a baseline between 2.0 billion and 2.4 billion US dollars, sharp contractions occur periodically, most notably in June 2022 (471 million), December 2024 (783 million), and June 2025 (691 million). These fluctuations create instability in the operating profit available for debt servicing during specific quarters.
- Interest Coverage Ratio Erosion
- The interest coverage ratio demonstrates a clear downward trajectory, falling from a peak of 14.12 in March 2022 to 6.06 in March 2026. A pronounced acceleration in this decline is evident between September 2024 and June 2025, where the ratio dropped from 8.65 to 5.50. This trend reflects a diminished safety margin, as the consistent growth in interest obligations has outpaced the stability of operating income.
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