Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Lockheed Martin Corp., liquidity ratios (quarterly data)
Based on: 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 liquidity position, as indicated by the current, quick, and cash ratios, exhibits fluctuating trends over the observed period. Generally, the ratios demonstrate a slight weakening trend from the beginning of the period through the end, with some quarterly variations.
- Current Ratio
- The current ratio remained relatively stable between March 2022 and December 2022, fluctuating between 1.27 and 1.32. A slight decline was observed in March 2023 (1.30) followed by an increase in June 2023 (1.36), maintaining at that level through September 2023. A more noticeable decrease occurred in December 2023 (1.21), continuing into March 2024 (1.30) and further declining to 1.13 by December 2024. The ratio continued to decrease through March 2025 (1.08) and June 2025 (0.98) before a slight recovery to 1.13 in September 2025, and settling at 1.09 by December 2025.
- Quick Ratio
- Similar to the current ratio, the quick ratio showed stability between March 2022 and December 2022, ranging from 1.03 to 1.09. It increased to 1.14 in June and September 2023, before decreasing to 0.99 in December 2023. The quick ratio continued to decline through December 2024 (0.92), reaching its lowest point in June 2025 (0.80). A partial recovery was seen in September 2025 (0.93) and December 2025 (0.90).
- Cash Ratio
- The cash ratio experienced more volatility. It began at 0.12 in March 2022, with fluctuations throughout the year, peaking at 0.16 in December 2022. A rise to 0.21 was observed in June and September 2023, followed by a significant drop to 0.09 in December 2023. The ratio remained low through March 2025 (0.09) and June 2025 (0.05), before increasing to 0.15 in September 2025 and 0.18 in December 2025.
- Overall Trend
- A general weakening in all three liquidity ratios is apparent in the latter half of the observed period. While fluctuations occur, the trend suggests a decreasing ability to meet short-term obligations with increasingly liquid assets. The most pronounced decline is observed in the quick and cash ratios, indicating a potential shift in the composition of current assets towards less liquid forms.
Current Ratio
Lockheed Martin Corp., current ratio calculation (quarterly data)
| 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 | 25,362) | 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) | |||||
| Current liabilities | 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) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 1.09 | 1.13 | 0.98 | 1.08 | 1.13 | 1.30 | 1.24 | 1.30 | 1.21 | 1.36 | 1.36 | 1.30 | 1.32 | 1.28 | 1.27 | 1.27 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 1.19 | 1.18 | 1.23 | 1.23 | 1.32 | 1.12 | 1.18 | 1.14 | 1.14 | 1.15 | 1.17 | 1.16 | 1.22 | 1.22 | 1.25 | 1.30 | |||||
| Caterpillar Inc. | — | 1.38 | 1.34 | 1.32 | 1.42 | 1.40 | 1.28 | 1.35 | 1.35 | 1.45 | 1.33 | 1.43 | 1.39 | 1.41 | 1.45 | 1.44 | |||||
| Eaton Corp. plc | — | 1.28 | 1.24 | 1.31 | 1.50 | 1.53 | 1.56 | 1.56 | 1.51 | 1.45 | 1.53 | 1.50 | 1.38 | 1.28 | 0.97 | 0.99 | |||||
| GE Aerospace | 1.04 | 1.08 | 1.04 | 1.08 | 1.09 | 1.13 | 1.14 | 1.17 | 1.18 | 1.17 | 1.25 | 1.25 | 1.16 | 1.10 | 1.13 | 1.19 | |||||
| Honeywell International Inc. | — | 1.36 | 1.29 | 1.25 | 1.31 | 1.44 | 1.21 | 1.66 | 1.27 | 1.35 | 1.41 | 1.26 | 1.25 | 1.24 | 1.20 | 1.21 | |||||
| RTX Corp. | — | 1.07 | 1.01 | 1.01 | 0.99 | 0.99 | 0.99 | 1.07 | 1.04 | 1.03 | 1.10 | 1.13 | 1.09 | 1.09 | 1.10 | 1.16 | |||||
Based on: 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 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 25,362 ÷ 23,335 = 1.09
2 Click competitor name to see calculations.
The current ratio exhibited a generally stable pattern over the observed period, with fluctuations occurring throughout the quarters. Initially, the ratio remained consistent at 1.27 for the first two quarters. A slight increase was then noted, peaking at 1.36 in both the June and September quarters of 2023.
- Overall Trend
- From the September 2023 peak, a noticeable downward trend emerged. The ratio decreased to 1.21 by the end of 2023 and continued to decline, reaching a low of 0.98 in the March 2025 quarter. A modest recovery was observed in subsequent quarters, with the ratio increasing to 1.13 in September 2025 and stabilizing at 1.09 by the end of 2025.
- Short-Term Stability (2022-Mid 2023)
- For the initial period spanning from March 2022 to June 2023, the current ratio demonstrated relative stability, fluctuating within a narrow range of 1.27 to 1.36. This suggests a consistent ability to cover short-term obligations with short-term assets during this timeframe.
- Recent Decline and Recovery
- The decline observed from late 2023 through the first quarter of 2025 warrants attention. This suggests a potential weakening in the company’s short-term liquidity position. However, the subsequent increase in the ratio during the latter part of 2025 indicates a partial recovery, though the ratio remained below the levels seen in the earlier part of the period.
The fluctuations in the current ratio appear to be influenced by both current asset and current liability movements. Further investigation into the composition of these accounts would be necessary to determine the underlying drivers of these changes and assess their implications for the company’s financial health.
Quick Ratio
Lockheed Martin Corp., quick ratio calculation (quarterly data)
| 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) | |||||||||||||||||||||
| Cash and cash equivalents | 4,121) | 3,470) | 1,293) | 1,803) | 2,483) | 3,151) | 2,523) | 2,790) | 1,442) | 3,551) | 3,673) | 2,440) | 2,547) | 2,430) | 1,775) | 1,883) | |||||
| Receivables, net | 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) | |||||
| Contract assets | 13,001) | 13,949) | 14,896) | 14,677) | 12,957) | 14,224) | 13,907) | 14,050) | 13,183) | 13,605) | 13,008) | 13,189) | 12,318) | 12,333) | 11,753) | 12,130) | |||||
| Total quick assets | 21,023) | 21,263) | 19,495) | 18,504) | 17,791) | 19,516) | 19,360) | 19,097) | 16,757) | 19,561) | 20,108) | 18,212) | 17,370) | 17,247) | 16,929) | 16,540) | |||||
| Current liabilities | 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) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 0.90 | 0.93 | 0.80 | 0.87 | 0.92 | 1.10 | 1.05 | 1.08 | 0.99 | 1.14 | 1.14 | 1.07 | 1.09 | 1.06 | 1.03 | 1.03 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 0.38 | 0.34 | 0.34 | 0.35 | 0.39 | 0.24 | 0.26 | 0.22 | 0.28 | 0.28 | 0.28 | 0.29 | 0.32 | 0.29 | 0.28 | 0.29 | |||||
| Caterpillar Inc. | — | 0.78 | 0.72 | 0.69 | 0.80 | 0.76 | 0.69 | 0.73 | 0.74 | 0.76 | 0.74 | 0.79 | 0.79 | 0.78 | 0.81 | 0.84 | |||||
| Eaton Corp. plc | — | 0.65 | 0.63 | 0.74 | 0.85 | 0.87 | 0.94 | 0.93 | 0.91 | 0.84 | 0.85 | 0.78 | 0.73 | 0.65 | 0.50 | 0.51 | |||||
| GE Aerospace | 0.71 | 0.73 | 0.70 | 0.74 | 0.78 | 0.81 | 0.81 | 0.76 | 0.78 | 0.76 | 0.84 | 0.86 | 0.81 | 0.73 | 0.75 | 0.82 | |||||
| Honeywell International Inc. | — | 0.98 | 0.90 | 0.83 | 0.88 | 0.96 | 0.83 | 1.18 | 0.84 | 0.92 | 0.98 | 0.84 | 0.88 | 0.85 | 0.82 | 0.84 | |||||
| RTX Corp. | — | 0.67 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | 0.64 | 0.63 | 0.63 | 0.68 | 0.71 | 0.69 | 0.70 | 0.71 | 0.76 | |||||
Based on: 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 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 21,023 ÷ 23,335 = 0.90
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates a generally stable, though fluctuating, liquidity position. Initial values indicate a comfortable ability to meet short-term obligations with highly liquid assets. However, a slight decline is observed towards the end of the analyzed timeframe.
- Overall Trend
- The quick ratio generally remained above 1.0 throughout most of the period, suggesting a sufficient cushion of liquid assets to cover immediate liabilities. A peak is observed in the June and September quarters of 2023, with values of 1.14. A subsequent decrease is noted in the latter half of the period, falling to 0.90 by December 2025.
- Initial Period (Mar 27, 2022 – Dec 31, 2022)
- The quick ratio exhibited a modest upward trend during this period, increasing from 1.03 to 1.09. This indicates a strengthening short-term liquidity position. Both total quick assets and current liabilities experienced increases, but quick assets grew at a slightly faster rate.
- Mid-Period (Mar 26, 2023 – Sep 24, 2023)
- The ratio reached its highest points during this timeframe, peaking at 1.14 in both the June and September quarters of 2023. This coincided with a significant increase in total quick assets, notably reaching 20,108 US$ in millions in June 2023. Current liabilities also increased, but at a slower pace than quick assets.
- Recent Period (Dec 31, 2023 – Dec 31, 2025)
- A downward trend in the quick ratio is apparent in this period. While quick assets remained relatively stable, current liabilities increased more substantially, particularly in the March and June quarters of 2025, reaching 21,187 and 24,354 US$ in millions respectively. This resulted in a decrease in the ratio from 0.99 in December 2023 to 0.90 in December 2025. The lowest value observed during the entire analyzed period was 0.80 in June 2025.
The observed decline in the quick ratio towards the end of the period warrants further investigation. While the ratio remains relatively close to 1.0, the trend suggests a potential weakening in the company’s ability to meet short-term obligations using its most liquid assets. Monitoring this trend and the underlying drivers of changes in both quick assets and current liabilities is recommended.
Cash Ratio
Lockheed Martin Corp., cash ratio calculation (quarterly data)
| 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) | |||||||||||||||||||||
| Cash and cash equivalents | 4,121) | 3,470) | 1,293) | 1,803) | 2,483) | 3,151) | 2,523) | 2,790) | 1,442) | 3,551) | 3,673) | 2,440) | 2,547) | 2,430) | 1,775) | 1,883) | |||||
| Total cash assets | 4,121) | 3,470) | 1,293) | 1,803) | 2,483) | 3,151) | 2,523) | 2,790) | 1,442) | 3,551) | 3,673) | 2,440) | 2,547) | 2,430) | 1,775) | 1,883) | |||||
| Current liabilities | 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) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.18 | 0.15 | 0.05 | 0.09 | 0.13 | 0.18 | 0.14 | 0.16 | 0.09 | 0.21 | 0.21 | 0.14 | 0.16 | 0.15 | 0.11 | 0.12 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 0.27 | 0.22 | 0.22 | 0.23 | 0.27 | 0.11 | 0.13 | 0.08 | 0.17 | 0.14 | 0.15 | 0.16 | 0.19 | 0.16 | 0.14 | 0.15 | |||||
| Caterpillar Inc. | — | 0.21 | 0.16 | 0.11 | 0.21 | 0.17 | 0.13 | 0.15 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.21 | 0.21 | 0.22 | |||||
| Eaton Corp. plc | — | 0.06 | 0.06 | 0.20 | 0.26 | 0.25 | 0.34 | 0.32 | 0.34 | 0.25 | 0.20 | 0.09 | 0.09 | 0.08 | 0.07 | 0.06 | |||||
| GE Aerospace | 0.32 | 0.36 | 0.33 | 0.38 | 0.42 | 0.47 | 0.47 | 0.43 | 0.45 | 0.42 | 0.49 | 0.52 | 0.44 | 0.35 | 0.37 | 0.44 | |||||
| Honeywell International Inc. | — | 0.59 | 0.49 | 0.46 | 0.52 | 0.56 | 0.47 | 0.73 | 0.44 | 0.46 | 0.51 | 0.40 | 0.51 | 0.44 | 0.43 | 0.49 | |||||
| RTX Corp. | — | 0.11 | 0.09 | 0.10 | 0.11 | 0.13 | 0.12 | 0.12 | 0.14 | 0.12 | 0.13 | 0.15 | 0.16 | 0.14 | 0.13 | 0.17 | |||||
Based on: 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 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,121 ÷ 23,335 = 0.18
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates fluctuations, generally indicating a variable capacity to meet short-term obligations with only cash and cash equivalents. An initial decline is observed, followed by a period of relative stability, then a significant decrease, and a subsequent recovery before ending with a moderate increase.
- Overall Trend
- The cash ratio began at 0.12 in March 2022 and generally decreased to 0.09 by December 2022. It then increased, peaking at 0.21 in June and September 2023, before declining again to 0.09 in December 2023. A recovery is then seen, reaching 0.18 in June 2025.
- Initial Decline (Mar 2022 - Dec 2022)
- From March 2022 to December 2022, the cash ratio experienced a gradual decline from 0.12 to 0.09. This suggests a relative decrease in the proportion of current liabilities covered by immediately available cash during this period. Total cash assets remained relatively stable during this time, while current liabilities fluctuated.
- Period of Improvement (Jan 2023 - Sep 2023)
- The period from January 2023 through September 2023 saw a substantial improvement in the cash ratio, rising from 0.14 to 0.21. This improvement coincided with a significant increase in total cash assets, particularly between March and June 2023. Current liabilities also increased, but at a slower rate than cash assets.
- Subsequent Weakening (Oct 2023 - Mar 2025)
- Following the peak in September 2023, the cash ratio decreased to 0.05 by March 2025. This decline is primarily attributable to a substantial increase in current liabilities, which outpaced the changes in total cash assets. The most significant drop occurred between September 2024 and March 2025.
- Recent Recovery (Apr 2025 - Jun 2025)
- The most recent two quarters show a recovery in the cash ratio, increasing from 0.09 in March 2025 to 0.18 in June 2025. This is driven by a notable increase in total cash assets, while current liabilities have decreased slightly.
The fluctuations in the cash ratio suggest a dynamic liquidity position. While periods of strong cash coverage are evident, there are also times when the ability to cover short-term liabilities with readily available cash is comparatively limited. The recent recovery is a positive sign, but continued monitoring of both cash assets and current liabilities is warranted.