Stock Analysis on Net

Lockheed Martin Corp. (NYSE:LMT)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Lockheed Martin Corp., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 19.45 16.01 14.22 15.51 10.14
Receivables turnover 34.15 33.06 25.59 22.00 5.93
Payables turnover 74.34 64.48 40.16 19.35 31.02
Working capital turnover 11.52 12.01 19.15 31.53 10.58
Average No. Days
Average inventory processing period 19 23 26 24 36
Add: Average receivable collection period 11 11 14 17 62
Operating cycle 30 34 40 41 98
Less: Average payables payment period 5 6 9 19 12
Cash conversion cycle 25 28 31 22 86

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Lockheed Martin Corp. inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. Lockheed Martin Corp. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Lockheed Martin Corp. payables turnover ratio increased from 2019 to 2020 and from 2020 to 2021.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Lockheed Martin Corp. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Lockheed Martin Corp. number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Lockheed Martin Corp. operating cycle improved from 2019 to 2020 and from 2020 to 2021.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Lockheed Martin Corp. number of days of payables outstanding decreased from 2019 to 2020 and from 2020 to 2021.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Lockheed Martin Corp. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021.

Inventory Turnover

Lockheed Martin Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of sales 57,983  56,744  51,445  46,488  45,500 
Inventories 2,981  3,545  3,619  2,997  4,487 
Short-term Activity Ratio
Inventory turnover1 19.45 16.01 14.22 15.51 10.14
Benchmarks
Inventory Turnover, Competitors2
Boeing Co. 0.75 0.78 0.94 1.30 1.71
Caterpillar Inc. 2.53 2.55 3.25 3.21 3.10
General Electric Co. 3.40 3.80 4.74 4.81 4.19
Honeywell International Inc. 4.55 4.94 5.51 6.71 5.98
Raytheon Technologies Corp. 5.65 5.11 5.21 4.96 4.45
Inventory Turnover, Sector
Capital Goods 2.24 2.22 2.55 3.04 3.32
Inventory Turnover, Industry
Industrials 4.29 3.85 4.68 5.28 5.67

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 57,983 ÷ 2,981 = 19.45

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Lockheed Martin Corp. inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Receivables Turnover

Lockheed Martin Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net sales 67,044  65,398  59,812  53,762  51,048 
Receivables, net 1,963  1,978  2,337  2,444  8,603 
Short-term Activity Ratio
Receivables turnover1 34.15 33.06 25.59 22.00 5.93
Benchmarks
Receivables Turnover, Competitors2
Boeing Co. 23.58 29.75 23.44 26.07 8.88
Caterpillar Inc. 5.68 5.33 5.92 5.89 5.74
General Electric Co. 4.55 4.37 5.22 5.71 4.63
Honeywell International Inc. 5.04 4.78 4.90 5.57 4.57
Raytheon Technologies Corp. 6.66 6.11 5.70 4.66 4.75
Receivables Turnover, Sector
Capital Goods 7.69 7.38 7.47 7.55 5.53
Receivables Turnover, Industry
Industrials 8.27 7.83 8.86 8.88 7.04

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Receivables turnover = Net sales ÷ Receivables, net
= 67,044 ÷ 1,963 = 34.15

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Lockheed Martin Corp. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Payables Turnover

Lockheed Martin Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of sales 57,983  56,744  51,445  46,488  45,500 
Accounts payable 780  880  1,281  2,402  1,467 
Short-term Activity Ratio
Payables turnover1 74.34 64.48 40.16 19.35 31.02
Benchmarks
Payables Turnover, Competitors2
Boeing Co. 6.40 4.94 4.63 6.30 6.23
Caterpillar Inc. 4.36 4.75 6.15 5.25 4.79
General Electric Co. 3.32 3.67 4.20 5.40 6.07
Honeywell International Inc. 3.61 3.86 4.25 5.18 4.19
Raytheon Technologies Corp. 5.93 5.56 5.28 4.51 4.59
Payables Turnover, Sector
Capital Goods 5.68 5.52 5.58 5.99 6.14
Payables Turnover, Industry
Industrials 7.94 7.51 8.07 8.38 8.47

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 57,983 ÷ 780 = 74.34

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Lockheed Martin Corp. payables turnover ratio increased from 2019 to 2020 and from 2020 to 2021.

Working Capital Turnover

Lockheed Martin Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current assets 19,815  19,378  17,095  16,103  17,461 
Less: Current liabilities 13,997  13,933  13,972  14,398  12,637 
Working capital 5,818  5,445  3,123  1,705  4,824 
 
Net sales 67,044  65,398  59,812  53,762  51,048 
Short-term Activity Ratio
Working capital turnover1 11.52 12.01 19.15 31.53 10.58
Benchmarks
Working Capital Turnover, Competitors2
Boeing Co. 2.34 1.69 15.57 16.21 10.50
Caterpillar Inc. 3.54 2.84 4.04 4.99 4.58
General Electric Co. 4.94 2.26 7.03 19.33 8.59
Honeywell International Inc. 5.86 3.64 5.92 7.69 5.68
Raytheon Technologies Corp. 9.75 7.52 26.47 16.08 7.07
Working Capital Turnover, Sector
Capital Goods 4.76 3.17 9.21 12.69 7.73
Working Capital Turnover, Industry
Industrials 7.75 4.98 36.24 60.50 18.23

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Working capital turnover = Net sales ÷ Working capital
= 67,044 ÷ 5,818 = 11.52

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Lockheed Martin Corp. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Inventory Processing Period

Lockheed Martin Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Inventory turnover 19.45 16.01 14.22 15.51 10.14
Short-term Activity Ratio (no. days)
Average inventory processing period1 19 23 26 24 36
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boeing Co. 486 467 388 280 213
Caterpillar Inc. 144 143 112 114 118
General Electric Co. 107 96 77 76 87
Honeywell International Inc. 80 74 66 54 61
Raytheon Technologies Corp. 65 71 70 74 82
Average Inventory Processing Period, Sector
Capital Goods 163 165 143 120 110
Average Inventory Processing Period, Industry
Industrials 85 95 78 69 64

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 19.45 = 19

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Lockheed Martin Corp. number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021.

Average Receivable Collection Period

Lockheed Martin Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Receivables turnover 34.15 33.06 25.59 22.00 5.93
Short-term Activity Ratio (no. days)
Average receivable collection period1 11 11 14 17 62
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boeing Co. 15 12 16 14 41
Caterpillar Inc. 64 68 62 62 64
General Electric Co. 80 83 70 64 79
Honeywell International Inc. 72 76 75 66 80
Raytheon Technologies Corp. 55 60 64 78 77
Average Receivable Collection Period, Sector
Capital Goods 47 49 49 48 66
Average Receivable Collection Period, Industry
Industrials 44 47 41 41 52

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 34.15 = 11

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Lockheed Martin Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 19 23 26 24 36
Average receivable collection period 11 11 14 17 62
Short-term Activity Ratio
Operating cycle1 30 34 40 41 98
Benchmarks
Operating Cycle, Competitors2
Boeing Co. 501 479 404 294 254
Caterpillar Inc. 208 211 174 176 182
General Electric Co. 187 179 147 140 166
Honeywell International Inc. 152 150 141 120 141
Raytheon Technologies Corp. 120 131 134 152 159
Operating Cycle, Sector
Capital Goods 210 214 192 168 176
Operating Cycle, Industry
Industrials 129 142 119 110 116

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 19 + 11 = 30

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Lockheed Martin Corp. operating cycle improved from 2019 to 2020 and from 2020 to 2021.

Average Payables Payment Period

Lockheed Martin Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Payables turnover 74.34 64.48 40.16 19.35 31.02
Short-term Activity Ratio (no. days)
Average payables payment period1 5 6 9 19 12
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boeing Co. 57 74 79 58 59
Caterpillar Inc. 84 77 59 70 76
General Electric Co. 110 100 87 68 60
Honeywell International Inc. 101 95 86 70 87
Raytheon Technologies Corp. 62 66 69 81 80
Average Payables Payment Period, Sector
Capital Goods 64 66 65 61 59
Average Payables Payment Period, Industry
Industrials 46 49 45 44 43

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 74.34 = 5

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Lockheed Martin Corp. number of days of payables outstanding decreased from 2019 to 2020 and from 2020 to 2021.

Cash Conversion Cycle

Lockheed Martin Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 19 23 26 24 36
Average receivable collection period 11 11 14 17 62
Average payables payment period 5 6 9 19 12
Short-term Activity Ratio
Cash conversion cycle1 25 28 31 22 86
Benchmarks
Cash Conversion Cycle, Competitors2
Boeing Co. 444 405 325 236 195
Caterpillar Inc. 124 134 115 106 106
General Electric Co. 77 79 60 72 106
Honeywell International Inc. 51 55 55 50 54
Raytheon Technologies Corp. 58 65 65 71 79
Cash Conversion Cycle, Sector
Capital Goods 146 148 127 107 117
Cash Conversion Cycle, Industry
Industrials 83 93 74 66 73

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 19 + 115 = 25

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Lockheed Martin Corp. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021.