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: 2025-12-31), 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).
An analysis of long-term activity ratios reveals varying trends in asset utilization and equity efficiency over the five-year period. Generally, the company demonstrates consistent, though sometimes fluctuating, levels of asset turnover. Equity turnover, however, exhibits a more pronounced upward trend.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio experienced a slight decline from 8.83 in 2021 to 8.07 in 2023. A modest recovery is then observed in 2024 and 2025, reaching 8.14 and 8.46 respectively. This suggests a minor decrease in the efficiency of generating revenue from fixed assets, followed by a partial rebound.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also decreased from 7.54 in 2021 to 7.14 in 2023. The trend mirrors the previous ratio with improvements in 2024 (7.30) and 2025 (7.62). The inclusion of operating lease obligations appears to result in consistently lower turnover figures compared to the standard calculation.
- Total Asset Turnover
- The total asset turnover ratio remained relatively stable throughout the period, fluctuating between 1.25 and 1.32. A slight decrease is noted from 1.32 in 2021 to 1.25 in 2022, followed by a slight increase to 1.29 in 2023, then a decrease to 1.28 in 2024, and finally returning to 1.25 in 2025. This indicates a consistent, but not significantly changing, ability to generate sales from all assets.
- Equity Turnover
- The equity turnover ratio demonstrates a clear upward trend. It increased substantially from 6.12 in 2021 to 11.22 in 2024, before settling slightly to 11.17 in 2025. This indicates a growing ability to generate revenue relative to the amount of equity invested in the business. The increase suggests improved efficiency in utilizing shareholder equity to drive sales.
In summary, the company maintains a consistent level of overall asset turnover, while demonstrating increasing efficiency in utilizing equity to generate revenue. The slight fluctuations in fixed asset turnover warrant further investigation, but do not appear to represent a significant concern given the overall positive trend in equity turnover.
Net Fixed Asset Turnover
Lockheed Martin Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 75,048) | 71,043) | 67,571) | 65,984) | 67,044) | |
| Property, plant and equipment, net | 8,875) | 8,726) | 8,370) | 7,975) | 7,597) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 8.46 | 8.14 | 8.07 | 8.27 | 8.83 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 5.82 | 5.83 | 7.30 | 6.31 | 5.70 | |
| Caterpillar Inc. | — | 4.59 | 5.04 | 4.70 | 3.99 | |
| Eaton Corp. plc | — | 6.67 | 6.57 | 6.59 | 6.41 | |
| GE Aerospace | 6.07 | 5.65 | 6.06 | 5.96 | 5.47 | |
| Honeywell International Inc. | — | 6.22 | 6.48 | 6.48 | 6.18 | |
| RTX Corp. | — | 5.02 | 4.38 | 4.42 | 4.30 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | — | 5.75 | 5.98 | 5.79 | 5.46 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | — | 2.76 | 2.86 | 2.94 | 2.72 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover = Sales ÷ Property, plant and equipment, net
= 75,048 ÷ 8,875 = 8.46
2 Click competitor name to see calculations.
The net fixed asset turnover ratio experienced fluctuations over the five-year period. While generally remaining within a narrow range, a discernible pattern of initial decline followed by a recovery is observed. Sales exhibited an overall upward trend, though not consistently year-over-year, while net property, plant, and equipment also increased steadily.
- Net Fixed Asset Turnover
- The ratio began at 8.83 in 2021, indicating that for every dollar invested in net fixed assets, the company generated $8.83 in sales. A decrease was noted in 2022, with the ratio falling to 8.27. This decline continued, albeit at a slower pace, to 8.07 in 2023, representing the lowest point in the observed period. A slight recovery to 8.14 occurred in 2024, followed by a further increase to 8.46 in 2025. This final value suggests improved efficiency in asset utilization compared to the 2022 and 2023 levels, but remains below the initial value recorded in 2021.
The concurrent increase in both sales and net property, plant, and equipment suggests that the initial decline in the turnover ratio was not necessarily due to inefficient asset utilization, but potentially a result of significant investment in fixed assets that had not yet fully translated into increased sales. The subsequent recovery in the ratio, alongside continued growth in both sales and fixed assets, indicates a more effective utilization of these assets in generating revenue towards the end of the period.
The relatively stable nature of the ratio, despite fluctuations, suggests a consistent underlying business model and operational efficiency. However, the dip in 2022 and 2023 warrants further investigation to understand the specific factors contributing to the temporary reduction in asset turnover.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Lockheed Martin Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 75,048) | 71,043) | 67,571) | 65,984) | 67,044) | |
| Property, plant and equipment, net | 8,875) | 8,726) | 8,370) | 7,975) | 7,597) | |
| ROU operating lease assets | 976) | 1,000) | 1,100) | 1,100) | 1,300) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 9,851) | 9,726) | 9,470) | 9,075) | 8,897) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.62 | 7.30 | 7.14 | 7.27 | 7.54 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | 5.12 | 4.97 | 6.30 | 5.55 | 5.04 | |
| Caterpillar Inc. | — | 4.40 | 4.83 | 4.49 | 3.79 | |
| Eaton Corp. plc | — | 5.49 | 5.55 | 5.58 | 5.60 | |
| GE Aerospace | 5.30 | 4.83 | 5.17 | 5.08 | 4.55 | |
| Honeywell International Inc. | — | 5.33 | 5.50 | 5.58 | 5.28 | |
| RTX Corp. | — | 4.50 | 3.96 | 3.95 | 3.80 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | — | 5.11 | 5.31 | 5.13 | 4.80 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | — | 2.41 | 2.49 | 2.54 | 2.34 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 75,048 ÷ 9,851 = 7.62
2 Click competitor name to see calculations.
Analysis of the presented financial information reveals a generally stable, with a slight upward trend, in net fixed asset turnover over the five-year period. Sales experienced a minor decrease between 2021 and 2022, followed by consistent growth through 2025. Simultaneously, net fixed assets also increased steadily throughout the period. The net fixed asset turnover ratio, however, demonstrates a moderated response to these changes.
- Sales Trend
- Sales decreased from US$67,044 million in 2021 to US$65,984 million in 2022, representing a decline of approximately 1.5%. Subsequently, sales increased to US$67,571 million in 2023, US$71,043 million in 2024, and reached US$75,048 million in 2025, indicating a positive growth trajectory over the latter three years.
- Net Fixed Asset Trend
- Net fixed assets, inclusive of operating leases and right-of-use assets, exhibited a consistent upward trend, increasing from US$8,897 million in 2021 to US$9,851 million in 2025. The annual increases were relatively modest, ranging from approximately 1.8% to 3.9% year-over-year.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio decreased from 7.54 in 2021 to 7.27 in 2022, mirroring the decline in sales during that period. The ratio then decreased further to 7.14 in 2023. A slight recovery was observed in 2024, with the ratio increasing to 7.30. The ratio continued to improve in 2025, reaching 7.62, the highest value in the observed period. This final increase suggests improved efficiency in asset utilization alongside sales growth.
The consistent growth in net fixed assets, coupled with the initial sales decline, resulted in a temporary reduction in the net fixed asset turnover ratio. However, the subsequent sales increases, combined with the relatively moderate growth in fixed assets, led to a recovery and eventual improvement in the ratio. The ratio’s movement indicates the company is becoming more efficient at generating sales from its fixed asset base, particularly in the later years of the period.
Total Asset Turnover
Lockheed Martin Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 75,048) | 71,043) | 67,571) | 65,984) | 67,044) | |
| Total assets | 59,840) | 55,617) | 52,456) | 52,880) | 50,873) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 1.25 | 1.28 | 1.29 | 1.25 | 1.32 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 0.53 | 0.43 | 0.57 | 0.49 | 0.45 | |
| Caterpillar Inc. | — | 0.70 | 0.73 | 0.69 | 0.58 | |
| Eaton Corp. plc | — | 0.65 | 0.60 | 0.59 | 0.58 | |
| GE Aerospace | 0.33 | 0.29 | 0.40 | 0.39 | 0.36 | |
| Honeywell International Inc. | — | 0.51 | 0.60 | 0.57 | 0.53 | |
| RTX Corp. | — | 0.50 | 0.43 | 0.42 | 0.40 | |
| Total Asset Turnover, Sector | ||||||
| Capital Goods | — | 0.54 | 0.57 | 0.54 | 0.50 | |
| Total Asset Turnover, Industry | ||||||
| Industrials | — | 0.65 | 0.67 | 0.66 | 0.58 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Total asset turnover = Sales ÷ Total assets
= 75,048 ÷ 59,840 = 1.25
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a generally stable pattern over the five-year period, with minor fluctuations. Sales demonstrate an overall upward trend, while total assets also increase, though at a varying rate. The interplay between these two factors dictates the observed movement in the asset turnover ratio.
- Total Asset Turnover
- The ratio began at 1.32 in 2021, decreased to 1.25 in 2022, and then recovered slightly to 1.29 in 2023. It remained relatively flat at 1.28 in 2024 before declining again to 1.25 in 2025. This suggests a consistent, but not dramatically changing, efficiency in utilizing assets to generate sales.
- The initial decrease in 2022 coincided with a slight decrease in sales and a concurrent increase in total assets. This indicates that the company was generating less revenue per dollar of assets employed. The subsequent recovery in 2023 is attributable to a rise in sales, partially offsetting the continued high asset base.
- The stabilization in 2024, despite further asset growth, suggests improved asset utilization efficiency, although the slight decline in 2025 indicates a return to the previous trend. The relatively small fluctuations suggest a mature operational profile.
The observed trends suggest that while the company is growing its sales and asset base, it is not significantly improving its efficiency in converting assets into sales. The ratio’s movement closely mirrors the sales trend, indicating that changes in sales volume are the primary driver of changes in asset turnover. Continued monitoring of this ratio, in conjunction with sales and asset growth, is recommended to assess any potential shifts in operational efficiency.
Equity Turnover
Lockheed Martin Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 75,048) | 71,043) | 67,571) | 65,984) | 67,044) | |
| Stockholders’ equity | 6,721) | 6,333) | 6,835) | 9,266) | 10,959) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 11.17 | 11.22 | 9.89 | 7.12 | 6.12 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | 16.40 | — | — | — | — | |
| Caterpillar Inc. | — | 3.15 | 3.28 | 3.57 | 2.92 | |
| Eaton Corp. plc | — | 1.35 | 1.22 | 1.22 | 1.20 | |
| GE Aerospace | 2.27 | 1.82 | 2.36 | 2.02 | 1.76 | |
| Honeywell International Inc. | — | 2.07 | 2.31 | 2.12 | 1.85 | |
| RTX Corp. | — | 1.34 | 1.15 | 0.92 | 0.88 | |
| Equity Turnover, Sector | ||||||
| Capital Goods | — | 2.73 | 3.07 | 2.54 | 2.28 | |
| Equity Turnover, Industry | ||||||
| Industrials | — | 2.92 | 3.33 | 3.06 | 2.63 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Equity turnover = Sales ÷ Stockholders’ equity
= 75,048 ÷ 6,721 = 11.17
2 Click competitor name to see calculations.
Analysis of the presented financial information reveals a notable trend in equity turnover over the five-year period. Sales exhibited fluctuations, while stockholders’ equity experienced a consistent decline initially, followed by a stabilization and slight increase. The equity turnover ratio, calculated from these figures, demonstrates a clear upward trajectory.
- Sales Trend
- Sales decreased from US$67,044 million in 2021 to US$65,984 million in 2022, representing a slight contraction. Subsequently, sales increased to US$67,571 million in 2023, continued to US$71,043 million in 2024, and further rose to US$75,048 million in 2025. This indicates a positive sales growth trend over the latter part of the analyzed period.
- Stockholders’ Equity Trend
- Stockholders’ equity decreased significantly from US$10,959 million in 2021 to US$6,835 million in 2023. The decline slowed in 2024, with equity reaching US$6,333 million, and showed a modest recovery in 2025, increasing to US$6,721 million. This suggests a period of substantial equity reduction followed by a potential stabilization.
- Equity Turnover Ratio Analysis
- The equity turnover ratio increased consistently throughout the period. Starting at 6.12 in 2021, it rose to 7.12 in 2022, then to 9.89 in 2023. The most substantial increases occurred in 2023 and 2024, reaching 11.22. The ratio experienced a slight decrease in 2025, settling at 11.17. This upward trend indicates increasing efficiency in utilizing equity to generate sales.
- The increasing ratio, despite the initial decline in stockholders’ equity, suggests that the company is generating more sales revenue for each dollar of equity invested. The stabilization of equity in the later years, coupled with continued sales growth, likely contributed to the sustained high equity turnover ratio.
In summary, the observed trends suggest a company that has become more efficient in its use of equity to drive sales, even while experiencing a period of equity reduction. The recent stabilization of equity and continued sales growth are positive indicators.