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: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-26), 10-Q (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
The financial ratios over the observed quarters exhibit notable shifts in the company's leverage and solvency profile. A clear downward trend is visible in the debt to equity ratio from March 2020 through June 2022, indicating a reduction in reliance on debt relative to equity. This ratio decreases from 3.68 to a low of 0.96, suggesting a significant deleveraging phase. However, starting in December 2022, the ratio reverses direction, rising again to 3.04 by March 2025, reflecting a renewed increase in debt relative to equity.
Similarly, the debt to capital ratio declines steadily from 0.79 in March 2020 to 0.49 in September 2022, reinforcing the observation of reduced leverage during this initial period. From December 2022 onwards, the debt to capital ratio climbs to 0.75 by March 2025, consistent with the increase seen in debt to equity.
The debt to assets ratio remains relatively stable at around 0.23 during the first two years but sees a higher level starting in December 2022, rising gradually to 0.36 by March 2025. This rise in debt intensity relative to total assets coincides with the previously mentioned ratios and suggests an increased leveraging of the asset base in the latter periods.
Financial leverage, which represents the ratio of total assets to equity, follows a similar pattern to the debt ratios. It drops sharply from 14.29 in March 2020 to 4.35 in September 2022, indicating a significant reduction in the multiplier effect of equity on assets. Post-September 2022, the financial leverage ratio increases to a peak around 8.92 by September 2024 before slightly easing to 8.48 by March 2025.
The interest coverage ratio is available starting only from September 2020, and it remains relatively robust through to September 2021 with values exceeding 13, suggesting strong ability to cover interest expenses during this period. Following this, a gradual downward trajectory is observed with the ratio falling steadily to around 7 by the end of 2024 and slightly increasing again to 7.12 by March 2025. This decline implies a weakening cushion to meet interest obligations, possibly due to increased debt levels or changes in earnings before interest and taxes.
In summary, the data show an initial period of deleveraging and strengthening solvency until late 2022, characterized by declining debt ratios and financial leverage accompanied by strong interest coverage. After this period, leverage ratios increase significantly, and interest coverage deteriorates, suggesting a strategic shift towards greater debt use and associated financial risk.
- Debt to Equity Ratio
- Decreased from 3.68 to 0.96 until mid-2022; increased thereafter to 3.04 by early 2025.
- Debt to Capital Ratio
- Declined from 0.79 to 0.49 by September 2022; rose to 0.75 by March 2025.
- Debt to Assets Ratio
- Stable near 0.23 for initial periods; increased to 0.36 by early 2025.
- Financial Leverage
- Dropped from 14.29 to 4.35 until late 2022; rose back to around 8.48 by early 2025.
- Interest Coverage Ratio
- Strong coverage above 13 early on; declined to near 7 by late 2024; marginal recovery to 7.12 by March 2025.
Debt Ratios
Coverage Ratios
Debt to Equity
Lockheed Martin Corp., debt to equity calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | 1,643) | 643) | 142) | 142) | 168) | 168) | 168) | 283) | 115) | 118) | —) | —) | 500) | 6) | 6) | 506) | 506) | 500) | 1,000) | 500) | 1,250) | |||||||
| Long-term debt, net, excluding current maturities | 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) | 11,670) | 11,668) | 11,665) | 11,657) | 11,669) | 11,675) | 12,174) | 11,439) | |||||||
| Total debt | 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) | 11,676) | 11,674) | 12,171) | 12,163) | 12,169) | 12,675) | 12,674) | 12,689) | |||||||
| Stockholders’ equity | 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) | 10,959) | 9,631) | 6,522) | 6,312) | 6,015) | 4,953) | 3,751) | 3,446) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | 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 | 1.07 | 1.21 | 1.87 | 1.93 | 2.02 | 2.56 | 3.38 | 3.68 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 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 | 2.29 | 2.21 | 2.23 | 2.30 | 2.42 | 2.55 | 2.81 | 2.61 | |||||||
| Eaton Corp. plc | 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 | 0.52 | 0.57 | 0.79 | 0.68 | 0.54 | 0.57 | 0.58 | 0.59 | |||||||
| GE Aerospace | 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 | 0.87 | 1.68 | 1.90 | 2.12 | 2.11 | 2.39 | 2.43 | 2.41 | |||||||
| Honeywell International Inc. | 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 | 1.06 | 1.19 | 1.19 | 1.19 | 1.28 | 1.23 | 1.22 | 0.91 | |||||||
| RTX Corp. | 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 | 0.43 | 0.44 | 0.44 | 0.44 | 0.44 | 0.48 | 0.49 | 1.18 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-26), 10-Q (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q1 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 20,304 ÷ 6,683 = 3.04
2 Click competitor name to see calculations.
The analysis of the given financial data reveals distinct trends in the company’s capital structure over the observed periods. The primary focus is on total debt, stockholders' equity, and the debt to equity ratio, which collectively provide insights into the company's leverage and financial stability.
- Total Debt
- Total debt remained relatively stable from March 2020 through December 2022, fluctuating between approximately $11.5 billion and $12.7 billion. Notably, there is a significant increase starting in December 2022, with total debt rising sharply from $15.5 billion to over $20.3 billion by March 2025. This upward trajectory suggests an increasing reliance on debt financing in recent quarters.
- Stockholders’ Equity
- Stockholders’ equity generally exhibited an upward trend through September 2022, peaking near $11.9 billion, indicating strengthening equity capital. However, from December 2022 onward, a decline in equity levels is apparent, bottoming out around $6.2 billion by March 2025. This reduction in equity could be indicative of large repurchases, net losses, dividend payments exceeding earnings, or other factors eroding equity value.
- Debt to Equity Ratio
- The debt to equity ratio exhibited a notable downward trend from a high of 3.68 in March 2020 to a low near 0.96 by September 2022, reflecting improved equity cushioning relative to debt. Following September 2022, the ratio reversed course sharply, climbing back upwards to exceed levels above 3.0 by 2025, paralleling the trends seen in the components debt and equity. This rising ratio signals increased financial leverage, implying higher risk and potentially higher return expectations from debt holders.
In summary, this data reflects a substantial shift towards increased borrowing and declining equity post-2022. The earlier period shows deleveraging with equity growth and stable debt, improving the capital structure. Conversely, recent periods show a marked increase in debt levels, a decline in equity, and a consequent rise in leverage ratios, which may affect the company’s risk profile and cost of capital moving forward.
Debt to Capital
Lockheed Martin Corp., debt to capital calculation (quarterly data)
| Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | Dec 31, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | 1,643) | 643) | 142) | 142) | 168) | 168) | 168) | 283) | 115) | 118) | —) | —) | 500) | 6) | 6) | 506) | 506) | 500) | 1,000) | 500) | 1,250) | |||||||
| Long-term debt, net, excluding current maturities | 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) | 11,670) | 11,668) | 11,665) | 11,657) | 11,669) | 11,675) | 12,174) | 11,439) | |||||||
| Total debt | 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) | 11,676) | 11,674) | 12,171) | 12,163) | 12,169) | 12,675) | 12,674) | 12,689) | |||||||
| Stockholders’ equity | 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) | 10,959) | 9,631) | 6,522) | 6,312) | 6,015) | 4,953) | 3,751) | 3,446) | |||||||
| Total capital | 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) | 22,635) | 21,305) | 18,693) | 18,475) | 18,184) | 17,628) | 16,425) | 16,135) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | 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 | 0.52 | 0.55 | 0.65 | 0.66 | 0.67 | 0.72 | 0.77 | 0.79 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | 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 | 1.35 | 1.30 | 1.36 | 1.40 | 1.40 | 1.24 | 1.23 | 1.33 | |||||||
| Caterpillar Inc. | 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 | 0.70 | 0.69 | 0.69 | 0.70 | 0.71 | 0.72 | 0.74 | 0.72 | |||||||
| Eaton Corp. plc | 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 | 0.34 | 0.36 | 0.44 | 0.40 | 0.35 | 0.36 | 0.37 | 0.37 | |||||||
| GE Aerospace | 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 | 0.47 | 0.63 | 0.65 | 0.68 | 0.68 | 0.70 | 0.71 | 0.71 | |||||||
| Honeywell International Inc. | 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 | 0.51 | 0.54 | 0.54 | 0.54 | 0.56 | 0.55 | 0.55 | 0.48 | |||||||
| RTX Corp. | 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 | 0.30 | 0.30 | 0.31 | 0.31 | 0.31 | 0.32 | 0.33 | 0.54 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-26), 10-Q (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,304 ÷ 26,987 = 0.75
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends concerning the company's leverage and capital structure over the examined periods.
- Total Debt
- The total debt in US$ millions exhibits relative stability initially, fluctuating mildly between approximately 12,600 and 12,100 million from early 2020 through mid-2021. Subsequently, there is a discernible decline reaching a low near 11,480 million by the third quarter of 2022. However, starting from late 2022, total debt rises sharply and consistently, climbing from roughly 15,547 million to 20,304 million by the first quarter of 2025. This marked increase suggests significant new borrowing or refinancing activities in the most recent periods.
- Total Capital
- Total capital, measured in US$ millions, follows a generally upward trajectory over the span examined. Starting near 16,135 million in early 2020, it grows steadily with some fluctuations, peaking around 26,785 million by mid-2023. A brief decline occurs in late 2023 down to approximately 24,294 million, but from early 2024 onwards, total capital rebounds and resumes an upward trend, reaching nearly 26,987 million by early 2025. This indicates ongoing capitalization efforts and potentially increased equity or retained earnings contributing to the company's total capital base.
- Debt to Capital Ratio
- The debt to capital ratio shows a notable declining trend from 0.79 in early 2020 to a low near 0.49-0.50 in mid-2022, indicating a reduction in reliance on debt relative to total capital during this interval. This trend corresponds to the prior observations of declining debt combined with rising total capital. However, from late 2022 onwards, the ratio reverses direction and climbs steadily, reaching approximately 0.75 by early 2025. Such an increase in the leverage ratio correlates with the substantial rise in total debt outpacing the growth in total capital, highlighting an increased financial leverage and potentially higher financial risk.
In summary, the early part of the data period reflects a deleveraging phase characterized by declining debt levels and improving debt to capital ratios due to rising capital. In contrast, the later periods demonstrate a shift toward higher leverage with a pronounced increase in debt burden and a corresponding rise in the debt to capital ratio, implying augmented dependence on debt financing. These shifts may suggest changes in capital strategy, investment activities, or financing needs requiring careful monitoring given the potential implications for financial stability and credit risk.
Debt to Assets
Lockheed Martin Corp., debt to assets calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | 1,643) | 643) | 142) | 142) | 168) | 168) | 168) | 283) | 115) | 118) | —) | —) | 500) | 6) | 6) | 506) | 506) | 500) | 1,000) | 500) | 1,250) | |||||||
| Long-term debt, net, excluding current maturities | 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) | 11,670) | 11,668) | 11,665) | 11,657) | 11,669) | 11,675) | 12,174) | 11,439) | |||||||
| Total debt | 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) | 11,676) | 11,674) | 12,171) | 12,163) | 12,169) | 12,675) | 12,674) | 12,689) | |||||||
| Total assets | 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) | 50,873) | 51,843) | 52,099) | 51,437) | 50,710) | 50,773) | 49,603) | 49,248) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | 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 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.25 | 0.26 | 0.26 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | 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 | 0.42 | 0.43 | 0.43 | 0.42 | 0.42 | 0.38 | 0.38 | 0.27 | |||||||
| Caterpillar Inc. | 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 | 0.46 | 0.46 | 0.46 | 0.47 | 0.47 | 0.50 | 0.50 | 0.49 | |||||||
| Eaton Corp. plc | 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 | 0.25 | 0.27 | 0.33 | 0.30 | 0.25 | 0.26 | 0.27 | 0.27 | |||||||
| GE Aerospace | 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 | 0.18 | 0.27 | 0.27 | 0.29 | 0.30 | 0.31 | 0.32 | 0.32 | |||||||
| Honeywell International Inc. | 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 | 0.30 | 0.33 | 0.33 | 0.34 | 0.35 | 0.35 | 0.35 | 0.28 | |||||||
| RTX Corp. | 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 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.33 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-26), 10-Q (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,304 ÷ 56,669 = 0.36
2 Click competitor name to see calculations.
The financial data over the observed quarters indicate distinct trends in the total debt, total assets, and the debt to assets ratio.
- Total Debt
-
Total debt remained relatively stable from March 2020 to December 2022, fluctuating modestly between approximately $11.5 billion and $12.7 billion. However, starting from December 2022, a noticeable increase is evident, with total debt rising sharply to $15.5 billion and continuing an upward trajectory thereafter. By March 2025, total debt reached approximately $20.3 billion, indicating a significant buildup in leverage during the final quarters examined.
- Total Assets
-
Total assets show a generally consistent upward trend from roughly $49.2 billion in March 2020 to approximately $56.6 billion by March 2025. The asset base experienced steady growth with some fluctuations, peaking notably around June 2023 at nearly $57 billion before experiencing a minor decline and then stabilizing around mid-$55 billion in the subsequent quarters. This pattern suggests moderate asset expansion, with the company potentially investing or revaluing assets over time.
- Debt to Assets Ratio
-
The debt to assets ratio initially exhibited a declining trend from 0.26 in March 2020 to a low of 0.22 by September 2022, reflecting a reduction in relative leverage. This decline coincided with stable or slightly growing asset levels coupled with relatively stable debt levels. From December 2022 onwards, the ratio reversed course sharply, increasing from 0.29 to 0.36 by March 2025. This rise reflects the faster pace of debt accumulation compared to asset growth, indicating heightened financial leverage and potentially greater financial risk.
Overall, the analysis captures a period of financial stability followed by marked increases in debt levels, outpacing asset growth and leading to increased leverage as reflected in the debt to assets ratio. This shift warrants further scrutiny regarding the underlying causes, such as financing activities, investment strategies, or changes in market conditions impacting the company’s capital structure.
Financial Leverage
Lockheed Martin Corp., financial leverage calculation (quarterly data)
| Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | Dec 31, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | 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) | 50,873) | 51,843) | 52,099) | 51,437) | 50,710) | 50,773) | 49,603) | 49,248) | |||||||
| Stockholders’ equity | 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) | 10,959) | 9,631) | 6,522) | 6,312) | 6,015) | 4,953) | 3,751) | 3,446) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | 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 | 4.64 | 5.38 | 7.99 | 8.15 | 8.43 | 10.25 | 13.22 | 14.29 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 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 | 5.02 | 4.85 | 4.85 | 4.87 | 5.11 | 5.13 | 5.57 | 5.35 | |||||||
| Eaton Corp. plc | 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 | 2.07 | 2.14 | 2.39 | 2.27 | 2.13 | 2.14 | 2.14 | 2.17 | |||||||
| GE Aerospace | 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 | 4.93 | 6.33 | 7.09 | 7.30 | 7.13 | 7.64 | 7.62 | 7.43 | |||||||
| Honeywell International Inc. | 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 | 3.47 | 3.60 | 3.56 | 3.53 | 3.68 | 3.51 | 3.50 | 3.25 | |||||||
| RTX Corp. | 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 | 2.21 | 2.23 | 2.23 | 2.24 | 2.25 | 2.37 | 2.40 | 3.54 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-26), 10-Q (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q1 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 56,669 ÷ 6,683 = 8.48
2 Click competitor name to see calculations.
The financial data reveals notable trends in total assets, stockholders’ equity, and financial leverage over the reported periods. A comprehensive examination indicates variations and shifts in financial position and capital structure dynamics.
- Total Assets
- Total assets display a generally increasing trend, albeit with some fluctuations. Starting at approximately $49.2 billion in March 2020, the asset base gradually expands, reaching a peak near $56.7 billion by March 2025. Notably, there is a contraction observed around the end of 2023 with assets declining to about $52.5 billion, followed by a recovery in subsequent quarters. This overall upward trajectory suggests ongoing growth or accumulation of assets, despite intermittent periods of decline.
- Stockholders’ Equity
- Stockholders’ equity exhibits significant variability across the timeline. Initial values near $3.4 billion in early 2020 rise steadily to approximately $11 billion by the end of 2021, indicating an increase in net worth possibly driven by retained earnings or capital infusion during this interval. However, a marked decline is observed starting from early 2022, with equity dropping to around $6.8 billion by December 2023. This contraction may reflect distributions, losses, or changes in accounting treatments. The equity level then oscillates slightly thereafter, maintaining a range between $6.3 billion and $7.2 billion through the first quarter of 2025, signaling relative stabilization but at a lower base than the previous peak.
- Financial Leverage
- Financial leverage ratios exhibit a clear downward trend from 14.29 in March 2020 to a low near 4.35 in September 2022. This decline signifies a reduction in the ratio of total assets to equity, suggesting deleveraging or stronger equity relative to assets in this timeframe. After September 2022, leverage increases again, fluctuating between approximately 5.7 and 8.9, with peaks occurring toward the end of 2023 and during 2024. This resurgence may indicate an increased reliance on debt or other liabilities relative to equity during the latter periods. The initial drop and subsequent rise in leverage suggest shifting capital management strategies or responses to market and operational conditions.
In summary, total assets have grown modestly over the examined period with some mid-term contraction; equity increased significantly initially but declined substantially post-2021; and financial leverage decreased substantially before rising again. These patterns suggest phases of asset growth and equity strengthening followed by a period of equity erosion and increased leverage, reflecting dynamic financial management and possibly changing external or internal circumstances affecting the company’s balance sheet structure.
Interest Coverage
Lockheed Martin Corp., interest coverage calculation (quarterly data)
| Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | Dec 31, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net earnings | 1,712) | 527) | 1,623) | 1,641) | 1,545) | 1,866) | 1,684) | 1,681) | 1,689) | 1,912) | 1,778) | 309) | 1,733) | 2,049) | 614) | 1,815) | 1,837) | 1,792) | 1,698) | 1,626) | 1,717) | |||||||
| Less: Net loss from discontinued operations | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | (55) | —) | —) | |||||||
| Add: Income tax expense | 324) | (8) | 295) | 307) | 290) | 279) | 269) | 325) | 305) | 278) | 321) | 21) | 328) | 441) | 65) | 355) | 374) | 395) | 303) | 336) | 313) | |||||||
| Add: Interest expense | 268) | 264) | 256) | 261) | 255) | 254) | 237) | 223) | 202) | 202) | 145) | 141) | 135) | 146) | 141) | 142) | 140) | 149) | 145) | 149) | 148) | |||||||
| Earnings before interest and tax (EBIT) | 2,304) | 783) | 2,174) | 2,209) | 2,090) | 2,399) | 2,190) | 2,229) | 2,196) | 2,392) | 2,244) | 471) | 2,196) | 2,636) | 820) | 2,312) | 2,351) | 2,336) | 2,201) | 2,111) | 2,178) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | 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 | 14.27 | 13.67 | 15.97 | 15.44 | 14.93 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | -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 | -0.88 | -2.29 | -2.55 | -4.26 | -5.71 | — | — | — | |||||||
| Caterpillar Inc. | 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 | 17.88 | 14.11 | 11.79 | 9.28 | 8.80 | — | — | — | |||||||
| Eaton Corp. plc | 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 | 21.11 | 20.08 | 15.71 | 11.87 | 12.72 | — | — | — | |||||||
| GE Aerospace | 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 | -0.96 | 2.15 | 1.11 | 0.65 | 2.59 | — | — | — | |||||||
| Honeywell International Inc. | 7.43 | 7.82 | 8.40 | 9.33 | 9.89 | 10.36 | 10.68 | 12.45 | 14.34 | 16.41 | 20.95 | 20.60 | 21.35 | 22.09 | 20.98 | 18.89 | 16.79 | 17.75 | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-26), 10-Q (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q1 2025 Calculation
Interest coverage
= (EBITQ1 2025
+ EBITQ4 2024
+ EBITQ3 2024
+ EBITQ2 2024)
÷ (Interest expenseQ1 2025
+ Interest expenseQ4 2024
+ Interest expenseQ3 2024
+ Interest expenseQ2 2024)
= (2,304 + 783 + 2,174 + 2,209)
÷ (268 + 264 + 256 + 261)
= 7.12
2 Click competitor name to see calculations.
The earnings before interest and tax (EBIT) displayed significant fluctuations during the observed periods. Initial quarters from March 2020 to June 2021 showed relatively stable EBIT values mostly around the 2100 to 2400 million US$ range. However, there was a marked decrease in September 2021, with EBIT dropping to approximately 820 million US$, followed by a recovery back to around 2600 million US$ in December 2021. Another substantial decline occurred in June 2022, where EBIT fell to roughly 471 million US$, before rebounding again in subsequent quarters to values near or above 2200 million US$ through the end of 2024. The most recent quarters, including March 2025, again showed a downward spike to approximately 783 million US$ before a recovery to about 2300 million US$.
Interest expenses exhibited a generally increasing trend across the periods. Starting around 140 to 150 million US$ in early 2020, the interest expense gradually rose, reaching over 260 million US$ by late 2024 and early 2025. This upward trajectory indicates rising borrowing costs or higher debt levels over time.
Interest coverage ratios, which measure the ability to meet interest obligations from EBIT, were relatively high initially, with values over 14 in 2020 and early 2021. As EBIT experienced sharp declines, interest coverage correspondingly decreased, dropping from above 14 to levels near 7 by late 2024 and early 2025. This declining trend in interest coverage ratio suggests a reduced margin of safety in covering interest expenses, reflecting increased financial risk associated with lower EBIT and higher interest expenses.
- EBIT Trends
- Generally stable in early periods with intermittent sharp declines followed by recoveries.
- Volatility evident in September 2021 and June 2022, as well as in March 2025.
- Recent quarters show a mix of recovery and decline, indicating earnings volatility.
- Interest Expense
- Steady increase over time, rising from around 140 million US$ to over 260 million US$.
- Suggests increasing debt-related costs or greater leverage.
- Interest Coverage Ratio
- Declining trend from above 14 to near 7, indicating reduced ability to cover interest from EBIT.
- Reflects increased financial risk and possibly tighter liquidity conditions.