Lockheed Martin Corp. (NYSE:LMT) 

The investment activity ratios demonstrate varying performance over the analyzed period. Generally, the ratios exhibit some degree of cyclicality, though distinct trends emerge upon closer examination. Overall, the company appears to be efficiently utilizing its assets to generate revenue, with some fluctuations observed.

Net Fixed Asset Turnover

The net fixed asset turnover ratio generally remained within a narrow band between 8.27 and 8.70 for most of the period. A slight downward trend was observed from March 2022 through December 2022, followed by a recovery and stabilization around 8.3 to 8.4 for the subsequent quarters. A minor dip occurred in December 2023, before returning to levels consistent with the prior year. The most recent quarters show a slight increase, reaching 8.46 by December 2025. This suggests a relatively stable and efficient use of fixed assets to generate sales.

Total Asset Turnover

The total asset turnover ratio exhibited more volatility than the net fixed asset turnover. It began at 1.28 in March 2022, decreased to a low of 1.18 in June 2023, and then experienced a notable increase to 1.29 in December 2023. This upward momentum continued into early 2024, peaking at 1.29 in June 2024, before settling back to around 1.25-1.28. The ratio demonstrates the company’s ability to generate sales from its total asset base, with a clear improvement in efficiency observed in late 2023 and early 2024. The most recent value, 1.25 in December 2025, is consistent with the higher end of the observed range.

Equity Turnover

The equity turnover ratio displayed the most significant fluctuations. It started at 6.57 in March 2022, decreased substantially to 5.41 by September 2022, and then showed a strong upward trend, peaking at 9.89 in December 2023. This increase continued into 2024, reaching a high of 11.51 in June 2024, before moderating. A substantial increase is then observed in March 2025, reaching 13.47, followed by a decrease to 11.17 in December 2025. This ratio indicates how effectively the company is using shareholder equity to generate sales, and the recent trend suggests a significant improvement in this area, although the latest quarter shows a slight decline from the peak.

In summary, the company demonstrates a generally efficient use of its assets, with the equity turnover ratio showing the most dynamic changes. The observed trends suggest a period of improving asset utilization, particularly in generating sales from equity, although recent data indicates some stabilization or slight pullback from peak performance.

The net fixed asset turnover ratio for the analyzed period demonstrates a generally stable performance with some fluctuation. Overall, the ratio remains within a relatively narrow range, indicating consistent efficiency in generating sales from its fixed assets.

Overall Trend

The ratio began at 8.70 and generally decreased to a low of 8.07 before recovering to 8.46. This suggests a slight initial decline in the efficiency of fixed asset utilization, followed by a partial recovery. The most recent value, 8.46, is comparable to the initial value, indicating a return to earlier levels of performance.

Short-Term Fluctuations

A decrease is observed from the first quarter of 2022 (8.70) to the fourth quarter of 2022 (8.27). This decline is followed by a slight increase in the first quarter of 2023 (8.33) and a further increase in the second quarter of 2023 (8.46). A subsequent dip to 8.07 is noted in the third quarter of 2023, before a recovery through the end of 2024. The ratio shows relative stability in the first half of 2025, concluding at 8.46.

Relationship to Sales

Sales generally increased over the period, from US$14,964 million to US$20,321 million. While sales increased, the net fixed asset turnover ratio did not increase proportionally, suggesting that the growth in sales was not solely driven by increased utilization of existing fixed assets. The increase in property, plant, and equipment, net, also contributed to this effect.

Property, Plant, and Equipment Impact

Property, plant, and equipment, net, increased consistently throughout the period, from US$7,561 million to US$8,875 million. This increase in fixed assets, coupled with the relatively stable net fixed asset turnover ratio, indicates that the company has been investing in its fixed asset base, but the efficiency of generating sales from these assets has remained relatively consistent.

In conclusion, the net fixed asset turnover ratio suggests a consistent, though not dramatically improving, ability to generate sales from fixed assets. The observed fluctuations appear to be influenced by both sales volume and the level of investment in property, plant, and equipment.

The total asset turnover ratio for the analyzed period demonstrates a generally stable pattern with some fluctuations. Throughout the observed timeframe, the ratio consistently remains above 1.0, indicating that the entity generates more than one dollar of sales for every dollar of assets. However, subtle shifts and trends are discernible upon closer examination.

Overall Trend

The ratio exhibits a slight downward trend from March 2022 through June 2023, decreasing from 1.28 to 1.18. This suggests a marginally decreasing efficiency in asset utilization during this period. A subsequent recovery is observed, peaking at 1.29 in December 2023, before stabilizing around 1.27-1.28 for the following three quarters. The most recent measurement, December 2025, shows a ratio of 1.25.

Short-Term Fluctuations

A minor dip is noted between March 2022 and June 2022, followed by relative stability through December 2022. The most significant decrease occurs between March 2023 and June 2023. The ratio then experiences a notable increase in the latter half of 2023, potentially linked to seasonal factors or specific business activities. The period from March 2024 to September 2024 shows minimal variation, indicating a period of consistent asset utilization. A slight decrease is observed in the final quarter of 2024 and the first two quarters of 2025.

Relationship to Sales and Assets

The fluctuations in the total asset turnover ratio generally correlate with changes in sales and total assets. The decrease in the ratio from March 2022 to June 2023 coincides with a slower growth rate in sales compared to the increase in total assets. Conversely, the increase in the ratio in late 2023 is associated with a stronger sales performance relative to asset levels. The relatively stable ratio in the latter part of the period suggests a balanced relationship between sales and asset growth.

In conclusion, the entity demonstrates a consistent ability to generate sales from its asset base. While minor fluctuations exist, the total asset turnover ratio remains within a relatively narrow range, suggesting a stable operational efficiency. The observed trends warrant continued monitoring to identify any potential long-term shifts in asset utilization.

The equity turnover ratio for the analyzed period demonstrates considerable fluctuation, generally trending upwards with notable peaks and valleys. Initial values indicate a decline from 6.57 in March 2022 to 5.61 in June 2022, followed by a period of relative stability through September 2022 (5.41) and December 2022 (7.12). A subsequent increase is observed in the first half of 2023, culminating in a high of 7.29 in June 2023.

Overall Trend

The ratio exhibits an overall increasing trend when comparing the beginning and end of the analyzed period. Starting at 6.57 in March 2022, the ratio concludes at 11.17 in December 2025. However, this trend is not linear and is punctuated by significant quarterly variations.

A substantial surge in equity turnover is evident in the latter half of 2023, reaching 9.89 in September 2023 and peaking at 11.51 in March 2024. This suggests a more efficient utilization of stockholders’ equity in generating sales during this timeframe. Following this peak, the ratio experiences a slight decrease to 9.90 in June 2024 before rising again to 11.22 in December 2024.

Peak Performance

The highest equity turnover ratio recorded during the period is 13.47, occurring in March 2025. This indicates the most effective use of equity to generate sales within the observed timeframe. However, this peak is followed by a decline in subsequent quarters.

The final quarters of the period show a decreasing trend, with the ratio falling from 11.87 in September 2025 to 11.17 in December 2025. While still relatively high compared to earlier periods, this decline warrants further investigation to determine the underlying causes. The fluctuations in stockholders’ equity, coupled with changes in sales, are the primary drivers of these observed variations in equity turnover.

Relationship to Sales and Equity

The observed increases in equity turnover generally coincide with periods of strong sales growth or significant reductions in stockholders’ equity. Conversely, decreases in the ratio often correlate with slower sales growth or increases in equity. The substantial drop in equity observed in late 2023 likely contributed to the elevated turnover ratios in that period.

In summary, the equity turnover ratio demonstrates a dynamic pattern, influenced by both sales performance and changes in stockholders’ equity. While an overall upward trend is discernible, the ratio is subject to considerable quarterly volatility.