Lockheed Martin Corp. (NYSE:LMT)

Net fixed asset turnover

The net fixed asset turnover ratio showed a general decline from the beginning of the observed period in March 2021, starting at 9.15, decreasing steadily until it reached a low point of 8.07 in December 2023. Following this dip, the ratio experienced a recovery trend, fluctuating upward to reach 8.41 by September 2025. Overall, this indicates a modest reduction in efficiency relating to the use of fixed assets over the period, with some recent improvements.

Total asset turnover

Total asset turnover remained relatively stable throughout the period but showed slight volatility. Beginning at 1.28 in March 2021, the ratio experienced a gentle downward trend, hitting lower points around 1.18 to 1.19 in mid-2023 and early 2025. A minor rebound occurred at the end of 2023, with the ratio reaching 1.29, but it tapered off toward 1.22 by September 2025. This suggests consistent asset utilization efficiency with mild fluctuations over time.

Equity turnover

Equity turnover exhibited significant variability over the reported quarters. Initially high at 10.46 in March 2021, the ratio sharply declined, reaching a low of 5.41 in September 2022. Subsequently, a strong recovery ensued, with the ratio peaking at 13.47 in September 2025. This volatility indicates changes in equity efficiency and possibly reflects shifting capital structure or operational performance dynamics during the timeframe.

The financial data reveals several key trends regarding sales, property, plant, and equipment (PP&E), and net fixed asset turnover over multiple quarters.

Sales

Sales figures fluctuate over the observed periods, showing no consistent upward or downward trajectory. Initially, sales rose from 16,258 million to a peak of 17,729 million within one year, before dropping to 14,964 million. After this decline, sales recovered gradually, exhibiting moderate growth towards the end of the period, reaching around 18,609 million. Notably, sales during the first quarters often showed variability, with some declines followed by recovery in subsequent quarters.

Property, Plant and Equipment, Net

The net PP&E value generally trends upward across the quarters, indicating ongoing investment and asset accumulation. Starting from 7,213 million, it steadily increases, with minor fluctuations, to approximately 8,722 million towards the end of the dataset. This incremental increase suggests capital expenditures or asset acquisitions exceeding depreciation and disposals over the period.

Net Fixed Asset Turnover

The ratio of net fixed asset turnover demonstrates a gradual decline over time, starting at 9.15 and declining to a low of around 8.07 before slightly recovering towards the end to approximately 8.41. This trend implies that sales generated per unit of fixed assets have decreased, potentially reflecting either growth in fixed assets outpacing sales growth or reduced efficiency in asset use. The modest recovery seen in later quarters suggests some improvement in asset utilization efficiency.

Overall, the data indicates that while sales experienced variability and moderate growth, fixed assets have consistently increased, resulting in a modest decline in asset turnover efficiency, with signs of stabilization or recovery in the most recent periods.

Sales Trends

Quarterly sales figures demonstrate some volatility over the observed periods. Initial sales started at 16,258 million USD and showed fluctuations, peaking notably at 18,991 million USD in December 2022. However, after this peak, sales exhibited a pattern of alternating rises and declines. For example, sales dropped to 15,126 million USD in March 2023, then increased again, ending at 18,609 million USD in the last quarter reported (September 2025). The data reveals a cyclical behavior rather than a steady increase or decrease, reflecting possible seasonality or variable contract timing.

Total Assets Evaluation

Total assets started at 51,437 million USD and showed a gradual increase over the periods, reaching a high of 60,276 million USD by September 2025. This steady growth indicates continued investment and accumulation of resources. Some volatility is noted mid-period, such as a dip from 56,666 million USD in September 2023 to 52,456 million USD in December 2023, but the overall trajectory remains upward. This suggests ongoing expansion or asset acquisition despite short-term fluctuations.

Total Asset Turnover Analysis

The total asset turnover ratio, which measures the efficiency of asset use to generate sales, started at 1.28 and showed moderate variation across quarters. It slightly increased to a peak of 1.32 in December 2021, followed by a gradual decline toward 1.18 in June 2023. Thereafter, the ratio partially recovered, moving back to around 1.29 in mid to late 2024, and leveled off near 1.22 by the final periods. The pattern suggests variable efficiency in using assets to drive sales, with periods of both improved and reduced productivity.

Overall Insights

The company experienced fluctuating sales with notable peaks and troughs over the quarters, which may point to cyclical demand or contract timing. Meanwhile, total assets have generally increased, indicating long-term investment growth. The asset turnover ratio reflects changing effectiveness in asset utilization, with no clear trend of sustained improvement or decline. Together, these indicators suggest a dynamic operating environment with adaptive asset management and variable sales performance.

Sales Trend

Sales figures exhibit notable fluctuations over the observed periods. Initially, sales increased from approximately 16.3 billion USD to a peak nearing 18.9 billion USD by the end of 2022. This was followed by seasonal decreases and subsequent rebounds, with sales generally maintaining a range between 15 billion USD and 19 billion USD. The data shows a pattern of cyclical dips and recoveries, suggesting variability potentially due to market or operational factors. Towards the end of the timeline, sales demonstrate a solid recovery, trending upwards again to around 18.6 billion USD.

Stockholders’ Equity Movement

The stockholders’ equity reveals a less stable trajectory. There is an initial rise from approximately 6.3 billion USD to a high near 11 billion USD in late 2021, indicating possible capital infusion or retained earnings growth. However, subsequent quarters show a general downward trend, with equity levels declining notably to around 5.3 billion USD at one point before showing some recovery and stabilizing between 6 billion and 7.2 billion USD. This volatility in equity suggests shifts in company financing, dividend policies, or changes in asset valuation over time.

Equity Turnover Ratio Analysis

The equity turnover ratio, which measures sales generated per unit of equity, demonstrates considerable variation corresponding with changes in sales and equity levels. Initially, the ratio declines from over 10 to about 5.4, reflecting increased equity or reduced sales efficiency. Subsequently, it recovers, reaching highs above 13, indicating improved efficiency or sales growth relative to equity. The ratio's fluctuations mirror both the equity movements and sales performance, suggesting that the company’s use of equity to generate sales varied markedly across periods, with efficiency improving in the later stages of the data.

Overall Insights

The company experienced cyclical sales trends accompanied by significant fluctuations in stockholders’ equity, impacting the equity turnover ratio's consistency. The weakening equity base in certain periods, coupled with strong sales, leads to elevated turnover ratios, signaling enhanced capital efficiency. Conversely, equity increases with stagnant or declining sales reduce turnover. These dynamics underscore the importance of balancing capital management and sales growth to sustain operational efficiency over time.