Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Lockheed Martin Corp., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a consistent declining trend from 9.07 in 2020 to 8.14 in 2024. This suggests a gradual decrease in the efficiency with which the company is utilizing its fixed assets to generate sales over the period analyzed.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- When considering the operating lease right-of-use asset, the net fixed asset turnover also shows a downward trend, falling from 7.96 in 2020 to 7.30 in 2024. This reduction is steady over the years, indicating a similar pattern to the traditional net fixed asset turnover but at a slightly lower level, reflecting the impact of leasing arrangements on asset efficiency metrics.
- Total Asset Turnover
- The total asset turnover ratio fluctuates within a narrow range between 1.25 and 1.32 from 2020 to 2024. Initially rising slightly from 1.29 in 2020 to 1.32 in 2021, it then declines to 1.25 in 2022 before recovering marginally in 2023 and slightly decreasing again in 2024. Overall, the company's ability to generate sales from its total assets remains relatively stable, showing no significant improvement or deterioration during the period.
- Equity Turnover
- Equity turnover experiences considerable volatility. Starting at a high of 10.87 in 2020, it sharply declines to 6.12 in 2021 before gradually increasing to 11.22 by 2024. The initial drop is notable, followed by a steady recovery that surpasses the 2020 level by the end of the period. This pattern indicates fluctuating efficiency in utilizing shareholder equity to generate revenue, with a marked improvement in the later years.
Net Fixed Asset Turnover
Lockheed Martin Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 71,043) | 67,571) | 65,984) | 67,044) | 65,398) | |
| Property, plant and equipment, net | 8,726) | 8,370) | 7,975) | 7,597) | 7,213) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 8.14 | 8.07 | 8.27 | 8.83 | 9.07 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 5.83 | 7.30 | 6.31 | 5.70 | 4.92 | |
| Caterpillar Inc. | 4.59 | 5.04 | 4.70 | 3.99 | 3.15 | |
| Eaton Corp. plc | 6.67 | 6.57 | 6.59 | 6.41 | 6.02 | |
| GE Aerospace | 5.65 | 6.06 | 5.96 | 5.47 | 1.75 | |
| Honeywell International Inc. | 6.22 | 6.48 | 6.48 | 6.18 | 5.86 | |
| RTX Corp. | 5.02 | 4.38 | 4.42 | 4.30 | 3.78 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | 5.75 | 5.98 | 5.79 | 5.46 | 3.55 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 2.76 | 2.86 | 2.94 | 2.72 | 2.17 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 71,043 ÷ 8,726 = 8.14
2 Click competitor name to see calculations.
- Net Sales
- The net sales figures demonstrate a generally upward trajectory across the observed periods, increasing from 65,398 million US dollars in 2020 to 71,043 million US dollars in 2024. While there was a slight dip between 2021 and 2022, the overall trend is positive, reflecting growth in revenue generation over the five-year period.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment exhibits a steady increase year over year, rising from 7,213 million US dollars in 2020 to 8,726 million US dollars in 2024. This consistent investment in fixed assets suggests an ongoing commitment to capital expenditures, potentially to support production capacity or operational efficiency.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio shows a declining trend from 9.07 in 2020 to 8.14 in 2024. This decline indicates that the company's efficiency in generating sales from its fixed assets has decreased over time, implying that although fixed assets have increased, the corresponding sales have not kept pace at the same rate.
- Overall Analysis
- The combination of increasing net sales and property, plant, and equipment values alongside a decreasing net fixed asset turnover ratio suggests that while the company is growing its revenue and asset base, its asset utilization efficiency has slightly deteriorated. The company may be investing heavily in fixed assets, but the returns on these investments relative to sales volume are diminishing. This could warrant further examination into asset management or operational productivity measures to optimize the use of capital investments.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Lockheed Martin Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 71,043) | 67,571) | 65,984) | 67,044) | 65,398) | |
| Property, plant and equipment, net | 8,726) | 8,370) | 7,975) | 7,597) | 7,213) | |
| ROU operating lease assets | 1,000) | 1,100) | 1,100) | 1,300) | 1,000) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 9,726) | 9,470) | 9,075) | 8,897) | 8,213) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.30 | 7.14 | 7.27 | 7.54 | 7.96 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | 4.97 | 6.30 | 5.55 | 5.04 | 4.45 | |
| Caterpillar Inc. | 4.40 | 4.83 | 4.49 | 3.79 | 3.00 | |
| Eaton Corp. plc | 5.49 | 5.55 | 5.58 | 5.60 | 5.26 | |
| GE Aerospace | 4.83 | 5.17 | 5.08 | 4.55 | 1.63 | |
| Honeywell International Inc. | 5.33 | 5.50 | 5.58 | 5.28 | 5.15 | |
| RTX Corp. | 4.50 | 3.96 | 3.95 | 3.80 | 3.36 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | 5.11 | 5.31 | 5.13 | 4.80 | 3.25 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.41 | 2.49 | 2.54 | 2.34 | 1.92 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 71,043 ÷ 9,726 = 7.30
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends over the five-year period ending December 31, 2024. Net sales demonstrate a generally upward trajectory, with values increasing from 65,398 million US dollars in 2020 to 71,043 million US dollars in 2024. Although there is a slight decline observed in 2022 compared to 2021, the overall sales figures recover and surpass previous levels by 2024.
The net value of property, plant, and equipment (including operating lease, right-of-use assets) also shows consistent growth across the analyzed years. Beginning at 8,213 million US dollars in 2020, this asset category rises steadily each year, reaching 9,726 million US dollars by the end of 2024. This increase suggests ongoing investment in fixed assets and leased equipment, which may support the company’s operational capacity and future growth.
The net fixed asset turnover ratio exhibits a gradual decline from 7.96 in 2020 to 7.14 in 2023, before experiencing a slight increase to 7.30 in 2024. This ratio, which measures the efficiency of asset utilization to generate sales, indicates a decrease in turnover efficiency over the first four years followed by a modest recovery. The decline over the period primarily reflects the faster rate of growth in fixed assets relative to sales, implying that asset additions may initially be less productive in generating incremental revenue.
- Net Sales
- Generally upward trend with a minor dip in 2022; recovery leads to highest value in 2024.
- Property, Plant and Equipment
- Continuous increase in net fixed assets and leased assets, indicating sustained capital investment.
- Net Fixed Asset Turnover Ratio
- Declining trend in asset utilization efficiency, with a slight improvement in the final year.
Total Asset Turnover
Lockheed Martin Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 71,043) | 67,571) | 65,984) | 67,044) | 65,398) | |
| Total assets | 55,617) | 52,456) | 52,880) | 50,873) | 50,710) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 1.28 | 1.29 | 1.25 | 1.32 | 1.29 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 0.43 | 0.57 | 0.49 | 0.45 | 0.38 | |
| Caterpillar Inc. | 0.70 | 0.73 | 0.69 | 0.58 | 0.50 | |
| Eaton Corp. plc | 0.65 | 0.60 | 0.59 | 0.58 | 0.56 | |
| GE Aerospace | 0.29 | 0.40 | 0.39 | 0.36 | 0.29 | |
| Honeywell International Inc. | 0.51 | 0.60 | 0.57 | 0.53 | 0.51 | |
| RTX Corp. | 0.50 | 0.43 | 0.42 | 0.40 | 0.35 | |
| Total Asset Turnover, Sector | ||||||
| Capital Goods | 0.54 | 0.57 | 0.54 | 0.50 | 0.43 | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.65 | 0.67 | 0.66 | 0.58 | 0.50 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= 71,043 ÷ 55,617 = 1.28
2 Click competitor name to see calculations.
- Net Sales
- The net sales demonstrate a generally upward trajectory over the observed period. From 65,398 million US dollars in 2020, sales increased to 67,044 million in 2021, followed by a slight decrease to 65,984 million in 2022. Subsequently, there was a recovery with sales rising to 67,571 million in 2023 and further to 71,043 million in 2024. This pattern indicates overall growth with a minor dip in 2022.
- Total Assets
- Total assets have shown a steady increase from 50,710 million US dollars in 2020 to 50,873 million in 2021. The upward trend continued with 52,880 million in 2022, before a slight reduction to 52,456 million in 2023. In 2024, assets rose again to 55,617 million. This trend reflects steady asset accumulation with a minor fluctuation in 2023.
- Total Asset Turnover
- The total asset turnover ratio remained relatively stable throughout the years, fluctuating narrowly between 1.25 and 1.32. It started at 1.29 in 2020, increased to a peak of 1.32 in 2021, then dipped to 1.25 in 2022. It rebounded slightly to 1.29 in 2023 and settled at 1.28 in 2024. This consistency suggests relatively stable efficiency in utilizing assets to generate sales over the timeframe.
Equity Turnover
Lockheed Martin Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 71,043) | 67,571) | 65,984) | 67,044) | 65,398) | |
| Stockholders’ equity | 6,333) | 6,835) | 9,266) | 10,959) | 6,015) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 11.22 | 9.89 | 7.12 | 6.12 | 10.87 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 3.15 | 3.28 | 3.57 | 2.92 | 2.55 | |
| Eaton Corp. plc | 1.35 | 1.22 | 1.22 | 1.20 | 1.20 | |
| GE Aerospace | 1.82 | 2.36 | 2.02 | 1.76 | 2.05 | |
| Honeywell International Inc. | 2.07 | 2.31 | 2.12 | 1.85 | 1.86 | |
| RTX Corp. | 1.34 | 1.15 | 0.92 | 0.88 | 0.78 | |
| Equity Turnover, Sector | ||||||
| Capital Goods | 2.73 | 3.07 | 2.54 | 2.28 | 2.39 | |
| Equity Turnover, Industry | ||||||
| Industrials | 2.92 | 3.33 | 3.06 | 2.63 | 2.75 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Net sales ÷ Stockholders’ equity
= 71,043 ÷ 6,333 = 11.22
2 Click competitor name to see calculations.
- Net Sales
- The net sales have shown a generally increasing trend over the five-year period. Starting at 65,398 million US dollars in 2020, there was a slight increase to 67,044 million in 2021, followed by a small decline to 65,984 million in 2022. However, the sales rebounded in the next two years, reaching 67,571 million in 2023 and 71,043 million in 2024. Overall, this indicates growth in the company's revenue generation capability, despite minor fluctuations.
- Stockholders’ Equity
- Stockholders’ equity experienced significant volatility during the period. Beginning at 6,015 million US dollars in 2020, it nearly doubled to 10,959 million in 2021, suggesting a considerable increase in retained earnings or additional equity infusion. Subsequently, equity fell to 9,266 million in 2022 and further declined sharply to 6,835 million in 2023, continuing downward to 6,333 million in 2024. This downward shift over the last three years indicates possible dividend payments, share buybacks, losses, or other equity-reducing activities.
- Equity Turnover Ratio
- The equity turnover ratio, which measures how efficiently the company uses its equity to generate sales, shows notable variation. It started high at 10.87 in 2020, dropped substantially to 6.12 in 2021, then improved to 7.12 in 2022. From there, it increased markedly to 9.89 in 2023 and reached its highest point at 11.22 in 2024. The pattern reflects changing dynamics in equity utilization; the recent increase suggests improved efficiency in leveraging equity for sales growth.
- Overall Insights
- The data indicates that while sales have gradually increased, stockholders' equity has declined markedly after a peak, potentially indicating capital management strategies or profitability fluctuations. Despite equity reductions, the company has increased its efficiency in using equity to generate sales, as shown by the rising equity turnover ratio in the last two years. This could signify effective management decisions to optimize capital usage amid varying equity levels.