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-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).
Over the observed period, solvency ratios demonstrate a generally increasing trend in financial risk, particularly in the latter half of the timeframe. While initial quarters exhibited relatively stable leverage metrics, a noticeable shift towards higher debt levels and decreasing coverage ratios occurred from late 2022 through mid-2025. The final quarters show some stabilization, but remain elevated compared to earlier periods.
- Debt to Equity
- The debt to equity ratio began at 1.16 and generally decreased through September 2022, reaching a low of 0.96. However, it then increased substantially, peaking at 4.06 in June 2025 before declining slightly to 3.23 by December 2025. This indicates a growing reliance on debt financing relative to equity.
- Debt to Capital
- The debt to capital ratio followed a similar pattern to debt to equity, starting at 0.54 and remaining relatively stable in the initial quarters. It then exhibited a consistent upward trend, reaching 0.80 in June 2025, before decreasing to 0.76 in December 2025. This suggests an increasing proportion of the capital structure is financed by debt.
- Debt to Assets
- The debt to assets ratio showed a steady increase from 0.23 to 0.37 between March 2022 and June 2025, indicating a growing proportion of assets financed by debt. The ratio stabilized at 0.36 and 0.37 in the final two quarters, suggesting a potential plateauing of debt accumulation relative to asset growth.
- Financial Leverage
- Financial leverage, as measured by the ratio, increased significantly throughout the period. Starting at 5.15, it rose to a high of 11.04 in June 2025, before decreasing to 8.90 by December 2025. This substantial increase signifies a greater use of debt to amplify returns, but also increases financial risk. The recent decline suggests a possible moderation in the rate of leverage increase.
- Interest Coverage
- The interest coverage ratio demonstrated a consistent downward trend. Beginning at 14.12, it decreased to 6.30 by December 2025. This indicates a diminishing ability to cover interest expenses from earnings, potentially signaling increased vulnerability to changes in interest rates or declines in profitability. The ratio experienced fluctuations, but the overall trend is clearly negative.
In summary, the observed trends suggest a growing reliance on debt financing and a decreasing ability to comfortably cover interest obligations. While the most recent quarters show some signs of stabilization in certain metrics, the overall solvency position appears to have weakened over the analyzed period.
Debt Ratios
Coverage Ratios
Debt to Equity
Lockheed Martin Corp., debt to equity calculation (quarterly data)
| 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 | 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 | 20,532) | 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 | 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 | 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 | 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. | 9.92 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Caterpillar Inc. | — | 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 | — | 0.57 | 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 | 1.10 | 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. | — | 2.21 | 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. | — | 0.61 | 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-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 Q4 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 21,700 ÷ 6,721 = 3.23
2 Click competitor name to see calculations.
The debt to equity ratio exhibits a notable upward trend over the observed period, indicating increasing financial leverage. Initially, the ratio fluctuated around 1.0 to 1.16 during the first four quarters of the analyzed timeframe. However, a significant increase began in the first quarter of 2023 and continued through the first quarter of 2025.
- Initial Period (Mar 27, 2022 – Dec 31, 2022)
- The debt to equity ratio began at 1.16 and decreased to 0.96 by September 25, 2022, before rising to 1.68 by December 31, 2022. This suggests a moderate increase in debt relative to equity during this period, potentially due to financing activities or shifts in equity valuation.
- Accelerated Increase (Mar 26, 2023 – Mar 30, 2025)
- From March 26, 2023 (1.62) to March 30, 2025 (3.04), the ratio more than doubled. This substantial increase suggests a significant reliance on debt financing relative to equity. The ratio peaked at 4.06 in June 29, 2025, representing the highest level of leverage observed during the period.
- Recent Trend (Jun 30, 2024 – Dec 31, 2025)
- While the ratio reached its peak in June 2025, it experienced a slight decrease to 3.23 by December 31, 2025. This suggests a potential effort to moderate leverage, although the ratio remains considerably higher than levels observed earlier in the period. The decrease could be attributed to increased equity or a reduction in total debt.
- Underlying Components
- The increase in the debt to equity ratio is driven by a combination of factors. Total debt consistently increased over the period, rising from US$11,645 million to US$21,700 million. Simultaneously, stockholders’ equity experienced fluctuations, with a general downward trend, decreasing from US$10,002 million to US$6,721 million. The combined effect of increasing debt and decreasing equity resulted in the observed increase in the ratio.
The consistently rising debt to equity ratio warrants further investigation into the company’s financing strategies and its ability to service its debt obligations. The increasing leverage could potentially elevate financial risk, particularly if earnings do not keep pace with debt levels.
Debt to Capital
Lockheed Martin Corp., debt to capital calculation (quarterly data)
| Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current maturities of long-term debt | 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 | 20,532) | 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 | 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 | 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 | 28,421) | 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 | 0.76 | 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. | 0.91 | 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 | 0.69 | 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 | — | 0.36 | 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 | 0.50 | 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. | — | 0.69 | 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. | — | 0.38 | 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-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 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 21,700 ÷ 28,421 = 0.76
2 Click competitor name to see calculations.
The debt to capital ratio for the analyzed period demonstrates a generally increasing trend, indicating a growing reliance on debt financing relative to total capital. Initial values show a moderate level of debt, but a consistent upward movement is observed over the quarters examined.
- Overall Trend
- The debt to capital ratio began at 0.54 in March 2022 and generally increased to 0.76 by June 2024, before fluctuating between 0.73 and 0.78 for the remainder of the period, ending at 0.76 in December 2025. This suggests a period of increased financial leverage followed by a stabilization.
- Initial Phase (Mar 27, 2022 – Sep 25, 2022)
- From March 2022 to September 2022, the ratio decreased from 0.54 to 0.49. This initial decline suggests a period where capital growth outpaced debt accumulation, potentially due to increased equity or retained earnings.
- Significant Increase (Dec 31, 2022 – Jun 25, 2023)
- A notable increase in the ratio is evident from December 2022 (0.63) through June 2023 (0.66). This coincides with a substantial rise in total debt, from US$15,547 million to US$17,545 million, while total capital increased at a slower rate. This period indicates a deliberate strategy to increase debt financing.
- Peak and Stabilization (Sep 24, 2023 – Dec 31, 2025)
- The ratio peaked at 0.76 in June 2024. Following this peak, the ratio experienced minor fluctuations, remaining within the range of 0.73 to 0.78. While debt continued to increase in absolute terms, the growth in total capital largely kept pace, preventing further substantial increases in the ratio. The final value of 0.76 in December 2025 suggests a stabilization of the debt to capital structure.
The observed trend warrants further investigation into the reasons behind the increased debt levels and the company’s capacity to service this debt. While a moderate level of leverage can be beneficial, sustained increases require careful monitoring to ensure financial stability.
Debt to Assets
Lockheed Martin Corp., debt to assets calculation (quarterly data)
| Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current maturities of long-term debt | 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 | 20,532) | 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 | 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 | 59,840) | 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 | 0.36 | 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. | 0.32 | 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 | 0.45 | 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 | — | 0.26 | 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 | 0.15 | 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. | — | 0.46 | 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. | — | 0.23 | 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-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 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 21,700 ÷ 59,840 = 0.36
2 Click competitor name to see calculations.
The debt-to-assets ratio for the analyzed period demonstrates a consistent upward trend, indicating increasing financial leverage. Initially, the ratio stood at 0.23 in March 2022, and progressively increased over the subsequent quarters to reach 0.36 by December 2024, before stabilizing slightly at 0.36 in March 2025 and concluding at 0.36 in December 2025.
- Initial Period (Mar 27, 2022 – Dec 31, 2022)
- The ratio remained relatively stable between 0.22 and 0.23 for the first three quarters of the period. A notable increase occurred in the final quarter of 2022, rising to 0.29. This suggests a significant increase in debt relative to assets during that period.
- Growth Phase (Mar 26, 2023 – Dec 31, 2023)
- The ratio continued its upward trajectory throughout 2023, moving from 0.29 in March to 0.33 by December. This indicates a sustained increase in the proportion of assets financed by debt. The increase from 0.29 to 0.31 and then to 0.33 suggests a consistent strategy of leveraging assets with debt.
- Stabilization and Recent Trend (Mar 31, 2024 – Dec 31, 2025)
- The ratio reached 0.35 in the first three quarters of 2024, and then remained at 0.36 for the final quarter of 2024 and the first three quarters of 2025. The ratio concluded the analyzed period at 0.36 in December 2025. This suggests a potential stabilization of the company’s leverage position, although it remains at a higher level than observed at the beginning of the period.
The consistent increase in the debt-to-assets ratio throughout the analyzed period warrants attention. While increased leverage can amplify returns, it also elevates financial risk. The stabilization in the most recent quarters may indicate a deliberate effort to manage debt levels, but continued monitoring is advisable to assess the long-term implications of this increased financial leverage.
Financial Leverage
Lockheed Martin Corp., financial leverage calculation (quarterly data)
| 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 | 59,840) | 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 | 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 | 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. | 30.85 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Caterpillar Inc. | — | 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 | — | 2.16 | 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 | 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. | — | 4.82 | 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. | — | 2.61 | 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-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 Q4 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 59,840 ÷ 6,721 = 8.90
2 Click competitor name to see calculations.
Financial leverage, as indicated by the ratio of total assets to stockholders’ equity, exhibits a generally increasing trend over the observed period, with notable fluctuations. Initially, the ratio decreased from 5.15 in March 2022 to 4.35 in September 2022, suggesting a reduction in the proportion of assets financed by equity during that timeframe. However, this trend reversed, with the ratio increasing to 5.71 by December 2022.
- Overall Trend
- The period between March 2023 and June 2025 demonstrates a clear upward trajectory in financial leverage. The ratio rose from 5.66 to 11.04, indicating a substantial increase in the reliance on debt financing relative to equity. A slight decrease is observed in the final period, ending December 2025, with the ratio falling to 8.90, but it remains significantly higher than the levels seen in the earlier part of the observation window.
A period of particularly rapid increase in leverage occurred between June 2023 and June 2025, with the ratio nearly doubling. This suggests a significant shift in the company’s capital structure, potentially involving increased borrowing or a decrease in equity. The subsequent decline in December 2025, while present, does not negate the overall trend of increasing leverage.
- Peak and Trough
- The highest recorded financial leverage ratio was 11.04 in June 2025. The lowest ratio was 4.35, recorded in September 2022. This represents a considerable range, highlighting the dynamic nature of the company’s financial structure over the analyzed period.
The fluctuations in financial leverage suggest potential changes in financing strategies, investment decisions, or profitability impacting equity levels. The consistent increase in leverage in recent periods warrants further investigation to assess the associated risks and sustainability of the capital structure.
- Recent Performance
- The most recent quarterly values indicate a slight moderation in leverage, moving from 9.75 in September 2025 to 8.90 in December 2025. While this represents a decrease, the ratio remains elevated compared to earlier periods, suggesting continued reliance on debt financing.
In summary, the company’s financial leverage has generally increased over the analyzed period, with a particularly pronounced rise in the latter half. This trend should be monitored closely to evaluate its implications for financial risk and long-term sustainability.
Interest Coverage
Lockheed Martin Corp., interest coverage calculation (quarterly data)
| 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 | 1,344) | 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 | 187) | 319) | 75) | 324) | (8) | 295) | 307) | 290) | 279) | 269) | 325) | 305) | 278) | 321) | 21) | 328) | |||||
| Add: Interest expense | 290) | 286) | 274) | 268) | 264) | 256) | 261) | 255) | 254) | 237) | 223) | 202) | 202) | 145) | 141) | 135) | |||||
| Earnings before interest and tax (EBIT) | 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 | 6.30 | 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. | 1.95 | -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. | — | 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 | — | 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 | 12.86 | 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. | — | 6.96 | 6.92 | 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 | |||||
Based on: 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 Q4 2025 Calculation
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= (1,821 + 2,224 + 691 + 2,304)
÷ (290 + 286 + 274 + 268)
= 6.30
2 Click competitor name to see calculations.
The interest coverage ratio exhibits a generally declining trend over the observed period, though with some fluctuation. Initially strong, the ratio demonstrates increasing vulnerability in covering interest obligations with earnings before interest and tax.
- Initial Period (Mar 27, 2022 – Dec 31, 2022)
- The interest coverage ratio begins at a robust 14.12 and fluctuates between 10.88 and 13.31 before concluding the period at 11.72. While some quarterly variation exists, the ratio consistently indicates a strong ability to meet interest expenses from operating earnings during this timeframe.
- 2023 Performance
- Throughout 2023, the ratio continues to decline, starting at 10.58 and reaching a low of 9.84 by the end of the year. The ratio remains above 10 for most of the year, but the downward trajectory is apparent. Interest expense increased from US$202 million to US$254 million, while EBIT remained relatively stable.
- 2024 and Early 2025
- The decline accelerates in 2024, with the ratio falling to 7.00 by December. This represents a significant decrease from the levels observed in previous periods. The trend continues into the first half of 2025, reaching a low of 5.60 in June. This indicates a substantially reduced margin of safety in covering interest payments.
- Recent Recovery (Sep 28, 2025 – Dec 31, 2025)
- A slight recovery is observed in the latter part of 2025, with the ratio increasing to 5.50 in September and 6.30 in December. However, this remains considerably lower than the values recorded in 2022 and early 2023. The increase is likely due to a rise in EBIT, while interest expense remains relatively constant.
- EBIT and Interest Expense Relationship
- The observed trend is driven by a combination of factors. While EBIT fluctuates, it does not consistently increase to offset the steady rise in interest expense. Interest expense increased from US$135 million in March 2022 to US$290 million in December 2025, while EBIT experienced more pronounced quarterly variations without a clear upward trend.
Overall, the interest coverage ratio demonstrates a weakening ability to service debt obligations. Continued monitoring of this ratio, alongside the underlying drivers of EBIT and interest expense, is warranted.