Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
The analysis of short-term operating activity ratios reveals a company with highly efficient asset management and a lean approach to working capital. There is a general pattern of rapid inventory and receivable turnover, which contributes to a relatively short operating cycle and a condensed cash conversion cycle.
- Inventory Management
- Inventory turnover remains relatively stable, fluctuating primarily between 16.00 and 20.00. The average inventory processing period shows minimal volatility, consistently ranging between 18 and 23 days. This indicates a consistent and predictable flow of goods and a low risk of inventory obsolescence.
- Receivables and Collection Efficiency
- Receivables turnover exhibits more volatility than inventory, with significant peaks reaching 35.48 in March 2025. Correspondingly, the average receivable collection period is kept low, typically fluctuating between 10 and 19 days. This suggests a highly effective credit collection process and rapid conversion of receivables into cash.
- Payables and Liquidity Strategy
- Payables turnover shows periodic fluctuations, often peaking at year-end (December), which suggests seasonal adjustments in supplier payments. The average payables payment period generally ranges from 13 to 25 days. A trend toward longer payment periods is observable in the latter half of the period, which may indicate a strategic effort to preserve cash on hand.
- Working Capital and Operating Cycles
- Working capital turnover demonstrates a sharp upward trend starting in late 2024, peaking at 44.49 in March 2025, which indicates a significant increase in the efficiency of using working capital to generate revenue. The operating cycle remains stable between 30 and 42 days. The cash conversion cycle is notably short, frequently dipping below 15 days and reaching a low of 8 days in March 2025, reflecting an optimized cash flow position where cash is recovered quickly from investments in operating cycles.
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Turnover Ratios
Average No. Days
Inventory Turnover
Lockheed Martin Corp., inventory turnover calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating costs and expenses | 15,943) | 17,999) | 16,369) | 17,421) | 15,640) | 17,932) | 14,987) | 15,992) | 15,202) | 16,579) | 14,830) | 14,603) | 13,080) | 16,689) | 14,463) | 13,490) | 13,055) | ||||||
| Inventories | 4,251) | 3,524) | 3,749) | 3,699) | 3,599) | 3,474) | 3,234) | 3,097) | 3,278) | 3,132) | 3,312) | 3,498) | 3,471) | 3,088) | 3,113) | 3,431) | 3,144) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Inventory turnover1 | 15.93 | 19.13 | 17.97 | 17.84 | 17.94 | 18.46 | 19.41 | 20.21 | 18.67 | 18.87 | 17.88 | 16.82 | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 1.01 | 1.01 | 0.97 | 0.86 | 0.80 | 0.78 | 0.85 | 0.78 | 0.82 | 0.88 | 0.87 | 0.88 | 0.83 | 0.81 | 0.78 | 0.74 | 0.74 | ||||||
| Caterpillar Inc. | 2.40 | 2.47 | 2.20 | 2.16 | 2.21 | 2.39 | 2.36 | 2.42 | 2.50 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | ||||||
| Eaton Corp. plc | 3.50 | 3.63 | 3.57 | 3.51 | 3.55 | 3.64 | 3.66 | 3.81 | 3.85 | 3.95 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | ||||||
| GE Aerospace | 2.50 | 2.44 | 2.35 | 2.29 | 2.34 | 2.49 | 3.29 | 4.08 | 2.58 | 3.05 | 3.02 | 3.15 | 3.32 | 3.19 | 3.10 | 3.04 | 3.25 | ||||||
| Honeywell International Inc. | 3.73 | 3.83 | 3.52 | 3.45 | 3.59 | 3.70 | 3.73 | 3.69 | 3.65 | 3.72 | 3.76 | 3.82 | 3.90 | 4.04 | 4.09 | 4.06 | 4.20 | ||||||
| RTX Corp. | 5.09 | 5.30 | 4.97 | 4.77 | 4.83 | 5.12 | 4.74 | 4.64 | 4.76 | 4.83 | 4.60 | 4.68 | 4.81 | 5.03 | 5.03 | 5.14 | 5.33 | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Inventory turnover
= (Operating costs and expensesQ1 2026
+ Operating costs and expensesQ4 2025
+ Operating costs and expensesQ3 2025
+ Operating costs and expensesQ2 2025)
÷ Inventories
= (15,943 + 17,999 + 16,369 + 17,421)
÷ 4,251 = 15.93
2 Click competitor name to see calculations.
The analysis of operating activity between March 2022 and March 2026 reveals a period of fluctuating inventory efficiency and a notable expansion in asset holdings toward the end of the term. While operating expenses exhibited cyclical growth, the relationship between these costs and inventory levels shifted, leading to a decline in the turnover ratio in the final quarter of the observed period.
- Inventory Turnover Trends
- The inventory turnover ratio showed significant variance, characterized by a growth phase that peaked at 20.21 in June 2024. Following this peak, a gradual decline was observed through 2025, culminating in a sharp drop to 15.93 by March 2026. This trajectory indicates a reduction in the efficiency of inventory utilization relative to operating costs toward the end of the analyzed period.
- Operating Costs and Expenses
- Operating expenditures demonstrated a recurring seasonal pattern, with expenses consistently peaking in the fourth quarter of each year. Costs reached their highest levels in December 2024 and December 2025, both approaching $18 billion, suggesting a systemic increase in year-end operational activity.
- Inventory Level Dynamics
- Inventory holdings remained relatively stable between $3.08 billion and $3.50 billion from March 2022 through December 2024. However, a clear upward trend emerged beginning in March 2025, with inventory levels rising steadily to reach a peak of $4.25 billion by March 2026. The simultaneous increase in inventory assets and the decrease in the turnover ratio suggest that inventory accumulation outpaced the growth in operating expenses during the final year.
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Receivables Turnover
Lockheed Martin Corp., receivables turnover calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Sales | 18,021) | 20,321) | 18,609) | 18,155) | 17,963) | 18,622) | 17,104) | 18,122) | 17,195) | 18,874) | 16,878) | 16,693) | 15,126) | 18,991) | 16,583) | 15,446) | 14,964) | ||||||
| Receivables, net | 2,322) | 3,901) | 3,844) | 3,306) | 2,024) | 2,351) | 2,141) | 2,930) | 2,257) | 2,132) | 2,405) | 3,427) | 2,583) | 2,505) | 2,484) | 3,401) | 2,527) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Receivables turnover1 | 32.35 | 19.24 | 19.08 | 21.73 | 35.48 | 30.22 | 33.30 | 24.26 | 30.86 | 31.69 | 28.14 | 19.67 | 25.61 | 26.34 | 26.06 | 18.87 | 26.02 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 26.45 | 30.63 | 24.37 | 23.61 | 21.67 | 25.28 | 25.33 | 23.31 | 25.83 | 29.37 | 24.99 | 24.99 | 24.65 | 26.46 | 22.98 | 20.27 | 25.37 | ||||||
| Caterpillar Inc. | 5.86 | 5.86 | 6.02 | 6.14 | 6.56 | 6.61 | 6.85 | 6.69 | 6.86 | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | ||||||
| Eaton Corp. plc | 4.48 | 5.10 | 4.79 | 4.74 | 4.97 | 5.39 | 5.04 | 4.97 | 5.06 | 5.18 | 5.07 | 5.01 | 5.05 | 5.09 | 5.28 | 5.15 | 5.39 | ||||||
| GE Aerospace | 3.60 | 3.59 | 3.78 | 3.61 | 3.73 | 3.77 | 4.90 | 6.13 | 3.90 | 4.17 | 4.61 | 4.67 | 5.00 | 4.09 | 4.19 | 4.39 | 4.43 | ||||||
| Honeywell International Inc. | 4.67 | 4.91 | 4.46 | 4.43 | 4.64 | 4.92 | 4.80 | 4.81 | 4.94 | 4.87 | 4.65 | 4.52 | 4.57 | 4.77 | 4.74 | 4.45 | 4.82 | ||||||
| RTX Corp. | 6.98 | 6.03 | 6.70 | 6.75 | 7.15 | 7.36 | 7.83 | 7.06 | 6.91 | 6.36 | 6.67 | 7.13 | 6.81 | 7.36 | 7.15 | 6.28 | 7.15 | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Receivables turnover
= (SalesQ1 2026
+ SalesQ4 2025
+ SalesQ3 2025
+ SalesQ2 2025)
÷ Receivables, net
= (18,021 + 20,321 + 18,609 + 18,155)
÷ 2,322 = 32.35
2 Click competitor name to see calculations.
The analysis of quarterly operating activity reveals a consistent upward trajectory in sales revenue, complemented by significant volatility in receivables management and turnover efficiency.
- Sales Revenue Trends
- Revenue exhibits a general growth pattern, rising from 14,964 million USD in March 2022 to a peak of 20,321 million USD in December 2025. A recurring seasonal pattern is evident, with the highest sales volumes consistently occurring in the fourth quarter of each fiscal year.
- Receivables Balance Fluctuations
- Net receivables demonstrate a cyclical pattern, often peaking in the second quarter of the year. Notable peaks occurred in June 2022 (3,401 million USD), June 2023 (3,427 million USD), and reached a maximum in December 2025 (3,901 million USD). These fluctuations suggest periodic timing differences in payment collections relative to revenue recognition.
- Receivables Turnover Efficiency
- The receivables turnover ratio shows substantial variance over the analyzed period. Efficiency improved markedly between late 2023 and early 2025, reaching a peak of 35.48 in March 2025, which indicates an accelerated collection cycle. However, a significant decline was observed in the latter half of 2025, where the ratio dropped to 19.08 by September 2025, coinciding with a sharp increase in net receivables. A rapid recovery is noted by March 2026, with the ratio returning to 32.35.
The inverse correlation between the net receivables balance and the turnover ratio is pronounced. Periods of lower turnover typically align with spikes in receivables, while the highest turnover ratios are achieved when receivables are minimized relative to sales, suggesting a highly responsive but volatile collection process.
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Payables Turnover
Lockheed Martin Corp., payables turnover calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating costs and expenses | 15,943) | 17,999) | 16,369) | 17,421) | 15,640) | 17,932) | 14,987) | 15,992) | 15,202) | 16,579) | 14,830) | 14,603) | 13,080) | 16,689) | 14,463) | 13,490) | 13,055) | ||||||
| Accounts payable | 4,707) | 3,630) | 3,834) | 3,653) | 3,821) | 2,222) | 3,221) | 3,282) | 3,523) | 2,312) | 3,817) | 3,466) | 3,271) | 2,117) | 2,622) | 2,309) | 2,599) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Payables turnover1 | 14.39 | 18.58 | 17.57 | 18.06 | 16.89 | 28.85 | 19.48 | 19.07 | 17.38 | 25.56 | 15.51 | 16.97 | 17.65 | 27.25 | 21.48 | 24.07 | 21.92 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 6.40 | 6.50 | 6.81 | 6.72 | 6.43 | 6.03 | 5.79 | 5.61 | 5.92 | 5.86 | 6.18 | 6.28 | 6.37 | 6.18 | 6.36 | 6.17 | 6.73 | ||||||
| Caterpillar Inc. | 4.88 | 4.99 | 4.78 | 4.69 | 5.07 | 5.24 | 5.31 | 5.47 | 5.44 | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | ||||||
| Eaton Corp. plc | 3.67 | 4.11 | 4.31 | 4.27 | 4.26 | 4.18 | 4.24 | 4.31 | 4.38 | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | ||||||
| GE Aerospace | 2.89 | 2.87 | 2.88 | 2.72 | 2.85 | 3.07 | 4.08 | 5.01 | 2.99 | 3.27 | 3.26 | 3.41 | 3.57 | 2.98 | 3.14 | 3.14 | 3.32 | ||||||
| Honeywell International Inc. | 3.94 | 3.74 | 3.43 | 3.40 | 3.52 | 3.46 | 3.56 | 3.60 | 3.57 | 3.36 | 3.51 | 3.49 | 3.50 | 3.53 | 3.68 | 3.63 | 3.66 | ||||||
| RTX Corp. | 4.51 | 4.46 | 4.72 | 4.98 | 4.89 | 5.07 | 5.40 | 5.54 | 5.60 | 5.31 | 5.37 | 5.54 | 5.42 | 5.40 | 5.82 | 5.36 | 6.28 | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Payables turnover
= (Operating costs and expensesQ1 2026
+ Operating costs and expensesQ4 2025
+ Operating costs and expensesQ3 2025
+ Operating costs and expensesQ2 2025)
÷ Accounts payable
= (15,943 + 17,999 + 16,369 + 17,421)
÷ 4,707 = 14.39
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a complex relationship between operating expenditures and the management of accounts payable, characterized by significant seasonal volatility and a long-term shift in payment velocity.
- Operating Cost Trends
- Operating costs and expenses exhibit a general upward trajectory over the analyzed period, rising from 13,055 million USD in March 2022 to a peak of 17,999 million USD by December 2025. A recurring seasonal pattern is evident, with expenditures consistently peaking in the fourth quarter of each year, followed by a contraction in the first quarter.
- Accounts Payable Volatility
- The balance of accounts payable demonstrates substantial fluctuation rather than a linear trend. The balance remained relatively stable between 2,100 million USD and 3,800 million USD for the majority of the period. However, a significant escalation is observed toward the end of the timeframe, culminating in a period high of 4,707 million USD by March 29, 2026, suggesting an increase in short-term obligations to suppliers.
- Payables Turnover Dynamics
- The payables turnover ratio shows a distinct cyclical pattern and an overall downward trend. High turnover rates are consistently recorded every December (reaching 27.25 in 2022, 25.56 in 2023, and 28.85 in 2024), indicating an accelerated settlement of payables at the close of the fiscal year. Outside of these year-end spikes, the ratio has generally declined from the 21-24 range in 2022 to the 14-19 range between 2023 and 2026.
- Working Capital Implications
- The decrease in the turnover ratio to a period low of 14.39 by March 29, 2026, indicates that the company is taking longer to pay its creditors. This deceleration in payment velocity, paired with the record high in accounts payable, suggests a strategic shift toward utilizing supplier credit to preserve cash flow or a reaction to increased operational scale.
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Working Capital Turnover
Lockheed Martin Corp., working capital turnover calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current assets | 25,080) | 25,362) | 25,936) | 23,988) | 22,801) | 21,849) | 23,211) | 22,967) | 22,958) | 20,521) | 23,322) | 24,087) | 22,144) | 20,991) | 20,960) | 20,973) | 20,390) | ||||||
| Less: Current liabilities | 22,090) | 23,335) | 22,974) | 24,354) | 21,187) | 19,420) | 17,810) | 18,493) | 17,699) | 16,937) | 17,193) | 17,704) | 16,982) | 15,887) | 16,347) | 16,479) | 16,047) | ||||||
| Working capital | 2,990) | 2,027) | 2,962) | (366) | 1,614) | 2,429) | 5,401) | 4,474) | 5,259) | 3,584) | 6,129) | 6,383) | 5,162) | 5,104) | 4,613) | 4,494) | 4,343) | ||||||
| Sales | 18,021) | 20,321) | 18,609) | 18,155) | 17,963) | 18,622) | 17,104) | 18,122) | 17,195) | 18,874) | 16,878) | 16,693) | 15,126) | 18,991) | 16,583) | 15,446) | 14,964) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Working capital turnover1 | 25.12 | 37.02 | 24.76 | — | 44.49 | 29.25 | 13.20 | 15.88 | 13.24 | 18.85 | 11.04 | 10.56 | 12.81 | 12.93 | 14.03 | 14.28 | 15.14 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 4.96 | 4.40 | 4.29 | 3.15 | 2.89 | 2.15 | 6.04 | 4.13 | 5.76 | 5.78 | 5.46 | 4.80 | 4.61 | 3.42 | 3.13 | 2.87 | 2.51 | ||||||
| Caterpillar Inc. | 5.30 | 4.02 | 4.42 | 5.04 | 5.73 | 4.58 | 4.89 | 6.61 | 5.64 | 5.23 | 4.27 | 5.29 | 4.25 | 4.62 | 4.35 | 3.93 | 3.83 | ||||||
| Eaton Corp. plc | 12.60 | 9.20 | 10.02 | 11.29 | 8.69 | 6.31 | 5.84 | 5.33 | 5.58 | 5.91 | 6.61 | 6.16 | 7.01 | 8.70 | 10.69 | — | — | ||||||
| GE Aerospace | 134.54 | 26.19 | 14.05 | 28.44 | 13.68 | 10.83 | 9.60 | 11.15 | 6.93 | 7.24 | 8.11 | 5.70 | 5.87 | 7.93 | 13.29 | 10.55 | 7.14 | ||||||
| Honeywell International Inc. | 4.43 | 5.37 | 4.91 | 6.16 | 6.87 | 5.79 | 4.39 | 8.63 | 3.37 | 7.39 | 5.98 | 5.16 | 7.79 | 7.03 | 7.91 | 8.84 | 8.07 | ||||||
| RTX Corp. | 63.20 | 57.24 | 22.14 | 257.23 | 279.93 | — | — | — | 23.64 | 41.62 | 44.25 | 16.99 | 12.76 | 20.15 | 19.15 | 17.77 | 11.41 | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Working capital turnover
= (SalesQ1 2026
+ SalesQ4 2025
+ SalesQ3 2025
+ SalesQ2 2025)
÷ Working capital
= (18,021 + 20,321 + 18,609 + 18,155)
÷ 2,990 = 25.12
2 Click competitor name to see calculations.
The financial data indicates a significant shift in the management of short-term assets and liabilities relative to revenue generation from early 2022 through early 2026. While sales remained consistently strong and exhibited a general upward trend, the working capital base underwent substantial contraction and volatility, which led to a marked increase in the working capital turnover ratio.
- Sales Performance
- Revenue exhibits a pattern of steady growth with periodic fluctuations. Sales increased from 14,964 million in March 2022 to a peak of 20,321 million in December 2025. This trajectory suggests a stable demand environment and a consistent ability to expand top-line results over the analyzed period.
- Working Capital Trends
- Working capital displayed an initial period of expansion, peaking at 6,383 million in June 2023. This was followed by a pronounced downward trend, with values falling sharply to 2,429 million by September 2024 and reaching a negative position of -366 million in June 2025. A subsequent recovery phase is observed, with working capital returning to a positive balance and reaching 2,990 million by March 2026.
- Working Capital Turnover Dynamics
- The turnover ratio initially trended downward from 15.14 in March 2022 to a low of 10.56 in June 2023, indicating that working capital grew at a faster rate than sales. A significant reversal occurred starting in December 2023, with the ratio accelerating to 29.25 in September 2024 and peaking at 44.49 in December 2024. These spikes are primarily driven by the reduction in the working capital denominator rather than exponential sales growth. Following a period of non-calculable turnover in June 2025 due to negative working capital, the ratio stabilized at a higher baseline than the 2022-2023 period, ending at 25.12 in March 2026, which suggests a more lean utilization of operating liquidity to support sales.
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Average Inventory Processing Period
Lockheed Martin Corp., average inventory processing period calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Inventory turnover | 15.93 | 19.13 | 17.97 | 17.84 | 17.94 | 18.46 | 19.41 | 20.21 | 18.67 | 18.87 | 17.88 | 16.82 | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average inventory processing period1 | 23 | 19 | 20 | 20 | 20 | 20 | 19 | 18 | 20 | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 363 | 363 | 377 | 424 | 459 | 466 | 428 | 470 | 443 | 415 | 419 | 416 | 438 | 452 | 468 | 494 | 493 | ||||||
| Caterpillar Inc. | 152 | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | ||||||
| Eaton Corp. plc | 104 | 101 | 102 | 104 | 103 | 100 | 100 | 96 | 95 | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | ||||||
| GE Aerospace | 146 | 150 | 156 | 160 | 156 | 147 | 111 | 89 | 141 | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | ||||||
| Honeywell International Inc. | 98 | 95 | 104 | 106 | 102 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | ||||||
| RTX Corp. | 72 | 69 | 73 | 77 | 76 | 71 | 77 | 79 | 77 | 76 | 79 | 78 | 76 | 73 | 73 | 71 | 69 | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 15.93 = 23
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a high degree of stability in inventory management efficiency over the observed period from March 2022 to March 2026.
- Average Inventory Processing Period
- The time required to process inventory remained remarkably consistent, predominantly fluctuating within a narrow range of 18 to 23 days. A baseline of 20 days was maintained for the majority of the observed quarters, suggesting a standardized and predictable operational cycle. The minimum processing duration was reached in June 2024 at 18 days, while the maximum duration of 23 days was recorded in June 2022 and March 2026.
- Inventory Turnover Dynamics
- Inventory turnover ratios exhibited greater variance than the processing period, ranging from a peak of 20.21 in June 2024 to a low of 15.93 in March 2026. An inverse correlation is evident; the acceleration of turnover in mid-2024 directly corresponds with the lowest processing period, indicating a period of optimal capital efficiency and rapid inventory movement.
- Recent Performance Trends
- Following a sustained period of efficiency through 2024 and 2025, a notable deceleration in inventory processing is observed in the final quarter of the analysis. The decline in the turnover ratio from 19.13 in December 2025 to 15.93 in March 2026 resulted in the processing period expanding to 23 days, representing the lowest level of inventory velocity since the second quarter of 2022.
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Average Receivable Collection Period
Lockheed Martin Corp., average receivable collection period calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Receivables turnover | 32.35 | 19.24 | 19.08 | 21.73 | 35.48 | 30.22 | 33.30 | 24.26 | 30.86 | 31.69 | 28.14 | 19.67 | 25.61 | 26.34 | 26.06 | 18.87 | 26.02 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average receivable collection period1 | 11 | 19 | 19 | 17 | 10 | 12 | 11 | 15 | 12 | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 14 | 12 | 15 | 15 | 17 | 14 | 14 | 16 | 14 | 12 | 15 | 15 | 15 | 14 | 16 | 18 | 14 | ||||||
| Caterpillar Inc. | 62 | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | ||||||
| Eaton Corp. plc | 81 | 72 | 76 | 77 | 73 | 68 | 72 | 73 | 72 | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | ||||||
| GE Aerospace | 101 | 102 | 97 | 101 | 98 | 97 | 75 | 60 | 93 | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | ||||||
| Honeywell International Inc. | 78 | 74 | 82 | 82 | 79 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | ||||||
| RTX Corp. | 52 | 61 | 54 | 54 | 51 | 50 | 47 | 52 | 53 | 57 | 55 | 51 | 54 | 50 | 51 | 58 | 51 | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 32.35 = 11
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a generally efficient receivables management process, with the collection cycle consistently remaining below 20 days throughout the observed period. While the metrics exhibit quarterly volatility, the overall trend indicates a strong ability to convert receivables into cash rapidly.
- Receivables Turnover Dynamics
- The turnover ratio fluctuates between a minimum of 18.87 and a maximum of 35.48. A progressive increase in efficiency is observed from September 2023 through March 2025, where the ratio climbed from 28.14 to its peak of 35.48. A subsequent contraction occurred during the middle of 2025, with the ratio dropping to 19.08 in September 2025, before rebounding sharply to 32.35 by March 2026.
- Average Receivable Collection Period Trends
- The collection period demonstrates a cyclical pattern of expansion and contraction. During 2022 and 2023, the period typically fluctuated between 12 and 19 days. A period of peak efficiency was recorded between September 2023 and March 2025, reaching a low of 10 days in December 2024. However, a notable slowdown occurred throughout 2025, where the collection period extended to 19 days for three consecutive quarters ending in December 2025.
- Correlation and Recent Performance
- An inverse correlation is maintained between the turnover ratio and the collection period. The temporary degradation of collection efficiency observed in 2025 was corrected in the first quarter of 2026, as the collection period fell back to 11 days. This recovery aligns with the increase in the turnover ratio, suggesting a restoration of streamlined operating liquidity and effective credit management.
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Operating Cycle
Lockheed Martin Corp., operating cycle calculation (quarterly data)
No. days
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Average inventory processing period | 23 | 19 | 20 | 20 | 20 | 20 | 19 | 18 | 20 | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | ||||||
| Average receivable collection period | 11 | 19 | 19 | 17 | 10 | 12 | 11 | 15 | 12 | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Operating cycle1 | 34 | 38 | 39 | 37 | 30 | 32 | 30 | 33 | 32 | 31 | 33 | 41 | 36 | 34 | 34 | 42 | 34 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 377 | 375 | 392 | 439 | 476 | 480 | 442 | 486 | 457 | 427 | 434 | 431 | 453 | 466 | 484 | 512 | 507 | ||||||
| Caterpillar Inc. | 214 | 210 | 227 | 228 | 221 | 208 | 208 | 206 | 199 | 194 | 201 | 207 | 211 | 201 | 210 | 212 | 215 | ||||||
| Eaton Corp. plc | 185 | 173 | 178 | 181 | 176 | 168 | 172 | 169 | 167 | 162 | 165 | 166 | 165 | 162 | 161 | 165 | 158 | ||||||
| GE Aerospace | 247 | 252 | 253 | 261 | 254 | 244 | 186 | 149 | 234 | 207 | 200 | 194 | 183 | 203 | 205 | 203 | 194 | ||||||
| Honeywell International Inc. | 176 | 169 | 186 | 188 | 181 | 173 | 174 | 175 | 174 | 173 | 176 | 177 | 174 | 167 | 166 | 172 | 163 | ||||||
| RTX Corp. | 124 | 130 | 127 | 131 | 127 | 121 | 124 | 131 | 130 | 133 | 134 | 129 | 130 | 123 | 124 | 129 | 120 | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 23 + 11 = 34
2 Click competitor name to see calculations.
The operating cycle exhibits a moderate level of volatility over the analyzed period, primarily driven by fluctuations in the receivable collection process rather than inventory management. The overall cycle typically ranges between 30 and 42 days, indicating a relatively efficient conversion of resources into cash.
- Average Inventory Processing Period
- The duration required to process inventory remains remarkably consistent, generally oscillating around 20 days. Minor peaks occurred in June 2022 and March 2026, reaching 23 days, while a minimum of 18 days was recorded in June 2024. This stability suggests a highly controlled and predictable supply chain and production cadence.
- Average Receivable Collection Period
- Greater variability is observed in the collection of receivables, with values ranging from a low of 10 days in March 2025 to a high of 19 days across multiple quarters, including June 2022, June 2023, September 2025, and December 2025. This volatility indicates that the timing of cash inflows is more susceptible to external factors or billing cycles than the internal production process.
- Operating Cycle Dynamics
- The total operating cycle fluctuates in tandem with the receivable collection period. The maximum duration of 42 days was reached in June 2022, coinciding with peaks in both inventory and receivables. The most efficient periods occurred in September 2024 and March 2025, where the cycle dropped to 30 days. The overall trend demonstrates that the corporation maintains a short operational window, though the efficiency of the cash conversion is periodically impacted by the timing of payments received from customers.
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Average Payables Payment Period
Lockheed Martin Corp., average payables payment period calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Payables turnover | 14.39 | 18.58 | 17.57 | 18.06 | 16.89 | 28.85 | 19.48 | 19.07 | 17.38 | 25.56 | 15.51 | 16.97 | 17.65 | 27.25 | 21.48 | 24.07 | 21.92 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average payables payment period1 | 25 | 20 | 21 | 20 | 22 | 13 | 19 | 19 | 21 | 14 | 24 | 22 | 21 | 13 | 17 | 15 | 17 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 57 | 56 | 54 | 54 | 57 | 61 | 63 | 65 | 62 | 62 | 59 | 58 | 57 | 59 | 57 | 59 | 54 | ||||||
| Caterpillar Inc. | 75 | 73 | 76 | 78 | 72 | 70 | 69 | 67 | 67 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | ||||||
| Eaton Corp. plc | 100 | 89 | 85 | 85 | 86 | 87 | 86 | 85 | 83 | 83 | 82 | 81 | 80 | 81 | 79 | 82 | 78 | ||||||
| GE Aerospace | 126 | 127 | 127 | 134 | 128 | 119 | 89 | 73 | 122 | 112 | 112 | 107 | 102 | 123 | 116 | 116 | 110 | ||||||
| Honeywell International Inc. | 93 | 98 | 106 | 107 | 104 | 105 | 103 | 101 | 102 | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | ||||||
| RTX Corp. | 81 | 82 | 77 | 73 | 75 | 72 | 68 | 66 | 65 | 69 | 68 | 66 | 67 | 68 | 63 | 68 | 58 | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 14.39 = 25
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a recurring cyclical pattern in the management of accounts payable, characterized by significant year-end contractions in the payment period followed by expansions in the first three quarters of the subsequent years.
- Seasonal Payment Volatility
- A consistent trend of accelerated payments is observed every December. The average payables payment period dropped to 13 days in December 2022, 14 days in December 2023, and 13 days in December 2024. These sharp declines suggest a systematic year-end settlement of obligations to suppliers, resulting in temporary spikes in payables turnover.
- Long-term Period Expansion
- Excluding the December anomalies, there is a discernible upward trend in the duration of the payment cycle. While the period fluctuated between 15 and 17 days during the first three quarters of 2022, it transitioned to a higher baseline of 19 to 24 days between March 2023 and September 2025. This trend culminated in a peak of 25 days by March 2026, indicating a strategic shift toward extending payment terms to optimize working capital.
- Inverse Correlation with Payables Turnover
- A strict inverse relationship exists between payables turnover and the payment period. The highest turnover rates, specifically 27.25 in December 2022 and 28.85 in December 2024, correspond directly with the shortest payment periods. Conversely, the lowest turnover rate of 14.39 in March 2026 aligns with the longest payment period of 25 days, confirming that turnover efficiency is driven primarily by the timing of supplier settlements.
Overall, the data indicates an increasing tendency to leverage supplier credit over time, punctuated by aggressive year-end liquidity outflows to clear payables.
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Cash Conversion Cycle
Lockheed Martin Corp., cash conversion cycle calculation (quarterly data)
No. days
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Average inventory processing period | 23 | 19 | 20 | 20 | 20 | 20 | 19 | 18 | 20 | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | ||||||
| Average receivable collection period | 11 | 19 | 19 | 17 | 10 | 12 | 11 | 15 | 12 | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | ||||||
| Average payables payment period | 25 | 20 | 21 | 20 | 22 | 13 | 19 | 19 | 21 | 14 | 24 | 22 | 21 | 13 | 17 | 15 | 17 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Cash conversion cycle1 | 9 | 18 | 18 | 17 | 8 | 19 | 11 | 14 | 11 | 17 | 9 | 19 | 15 | 21 | 17 | 27 | 17 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 320 | 319 | 338 | 385 | 419 | 419 | 379 | 421 | 395 | 365 | 375 | 373 | 396 | 407 | 427 | 453 | 453 | ||||||
| Caterpillar Inc. | 139 | 137 | 151 | 150 | 149 | 138 | 139 | 139 | 132 | 127 | 135 | 135 | 133 | 124 | 134 | 135 | 133 | ||||||
| Eaton Corp. plc | 85 | 84 | 93 | 96 | 90 | 81 | 86 | 84 | 84 | 79 | 83 | 85 | 85 | 81 | 82 | 83 | 80 | ||||||
| GE Aerospace | 121 | 125 | 126 | 127 | 126 | 125 | 97 | 76 | 112 | 95 | 88 | 87 | 81 | 80 | 89 | 87 | 84 | ||||||
| Honeywell International Inc. | 83 | 71 | 80 | 81 | 77 | 68 | 71 | 74 | 72 | 64 | 72 | 72 | 70 | 64 | 67 | 71 | 63 | ||||||
| RTX Corp. | 43 | 48 | 50 | 58 | 52 | 49 | 56 | 65 | 65 | 64 | 66 | 63 | 63 | 55 | 61 | 61 | 62 | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 23 + 11 – 25 = 9
2 Click competitor name to see calculations.
The operating activity ratios demonstrate a consistent pattern of working capital management characterized by relatively low cycle times and moderate volatility. The interaction between inventory movement, receivable collection, and payable settlements suggests a disciplined approach to liquidity and short-term asset management.
- Average Inventory Processing Period
- The inventory processing period remains remarkably stable, oscillating primarily between 18 and 22 days throughout the period. This consistency indicates a standardized production and delivery cadence with minimal disruption to supply chain throughput, peaking slightly at 23 days in June 2022 and March 2026.
- Average Receivable Collection Period
- Receivable collection shows periodic fluctuations, typically ranging from 10 to 19 days. A trend toward improved collection efficiency is observable between late 2023 and early 2024, reaching a low of 10 days by March 2025. Despite intermittent spikes to 19 days, the overall period remains low, indicating strong credit control and prompt payment from customers.
- Average Payables Payment Period
- The payment period for payables exhibits the highest degree of variability among the three components, with values ranging from 13 to 25 days. A recurring pattern of contraction is observed during December of each year, suggesting a systematic year-end settlement of obligations with suppliers, which momentarily reduces the company's reliance on supplier financing.
- Cash Conversion Cycle
- The overall cash conversion cycle fluctuates between a minimum of 8 days and a maximum of 27 days. The most efficient cycles, occurring in September 2022, December 2023, and March 2026, are driven by a combination of rapid receivable collection and an extension of the payables payment period. The volatility in the total cycle is primarily a function of the timing of payables rather than shifts in inventory or receivable efficiency.
The operational trend indicates an efficient cash flow regime where liquid assets are recovered from sales shortly after the initial outlay for production. The stability of the inventory processing period combined with the agility of the collection period ensures that the cash conversion cycle remains lean, supporting robust short-term liquidity.
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