Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Lockheed Martin Corp., short-term (operating) activity ratios
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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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 + 11 – 5 = 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. |