Stock Analysis on Net
Stock Analysis on Net

Lockheed Martin Corp. (NYSE:LMT)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Lockheed Martin Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal income tax expense 1,352 1,574 1,618 1,325 1,292
Foreign income tax expense 120 102 87 93 50
Current 1,472 1,676 1,705 1,418 1,342
Federal income tax expense (benefit) (604) (503) (776) (194) 21
Foreign income tax expense (benefit) 16 5 19 11 (16)
Deferred (588) (498) (757) (183) 5
Federal and foreign income tax expense 884 1,178 948 1,235 1,347

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Lockheed Martin Corp. current decreased from 2022 to 2023 and from 2023 to 2024.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Lockheed Martin Corp. deferred increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Federal and foreign income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Lockheed Martin Corp. federal and foreign income tax expense increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Effective Income Tax Rate (EITR)

Lockheed Martin Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
U.S. federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Foreign derived intangible income deduction -3.40% -2.30% -2.60% -2.30% -2.10%
Research and development tax credit -3.30% -2.80% -2.70% -1.60% -1.20%
Tax deductible dividends -1.10% -0.90% -1.00% -0.90% -0.80%
Excess tax benefits for share-based payment awards -0.30% -0.30% -0.60% -0.40% -0.60%
Other, net 1.30% -0.20% 0.10% 0.60% 0.10%
Effective tax rate 14.20% 14.50% 14.20% 16.40% 16.40%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

Components of Deferred Tax Assets and Liabilities

Lockheed Martin Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Pensions 1,184 1,485 1,340 1,985 2,994
Accrued compensation and benefits 741 731 718 957 926
Contract accounting methods 949 508 510 470 392
Research and development expenditures 1,643 1,251 2,268 — —
Domestic company operating losses 83 — — — —
Foreign company operating losses and credits 6 19 20 40 51
Other 522 487 471 473 509
Deferred tax assets, gross 5,128 4,481 5,327 3,925 4,872
Valuation allowance (41) (32) (31) (15) (13)
Deferred tax assets, net 5,087 4,449 5,296 3,910 4,859
Goodwill and intangible assets (545) (494) (449) (401) (363)
Property, plant and equipment (371) (415) (503) (518) (481)
Other (638) (597) (605) (709) (547)
Deferred tax liabilities (1,554) (1,506) (1,557) (1,628) (1,391)
Net deferred tax assets (liabilities) 3,533 2,943 3,739 2,282 3,468

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Lockheed Martin Corp. deferred tax assets, gross decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Deferred tax assets, net Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Lockheed Martin Corp. deferred tax assets, net decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Lockheed Martin Corp. net deferred tax assets (liabilities) decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Deferred Tax Assets and Liabilities, Classification

Lockheed Martin Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax assets 3,557 2,953 3,744 2,290 3,475
Deferred tax liabilities (included in Other noncurrent liabilities) 24 10 5 8 7

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Lockheed Martin Corp. deferred tax assets decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Deferred tax liabilities (included in Other noncurrent liabilities) Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Lockheed Martin Corp. deferred tax liabilities (included in Other noncurrent liabilities) increased from 2022 to 2023 and from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

Lockheed Martin Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 55,617 52,456 52,880 50,873 50,710
Less: Noncurrent deferred tax assets, net 3,557 2,953 3,744 2,290 3,475
Total assets (adjusted) 52,060 49,503 49,136 48,583 47,235
Adjustment to Total Liabilities
Total liabilities (as reported) 49,284 45,621 43,614 39,914 44,672
Less: Noncurrent deferred tax liabilities, net 24 10 5 8 7
Total liabilities (adjusted) 49,260 45,611 43,609 39,906 44,665
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 6,333 6,835 9,266 10,959 6,015
Less: Net deferred tax assets (liabilities) 3,533 2,943 3,739 2,282 3,468
Stockholders’ equity (adjusted) 2,800 3,892 5,527 8,677 2,547
Adjustment to Net Earnings
Net earnings (as reported) 5,336 6,920 5,732 6,315 6,833
Add: Deferred income tax expense (benefit) (588) (498) (757) (183) 5
Net earnings (adjusted) 4,748 6,422 4,975 6,132 6,838

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Lockheed Martin Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Lockheed Martin Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 7.51% 10.24% 8.69% 9.42% 10.45%
Adjusted net profit margin 6.68% 9.50% 7.54% 9.15% 10.46%
Total Asset Turnover
Reported total asset turnover 1.28 1.29 1.25 1.32 1.29
Adjusted total asset turnover 1.36 1.36 1.34 1.38 1.38
Financial Leverage
Reported financial leverage 8.78 7.67 5.71 4.64 8.43
Adjusted financial leverage 18.59 12.72 8.89 5.60 18.55
Return on Equity (ROE)
Reported ROE 84.26% 101.24% 61.86% 57.62% 113.60%
Adjusted ROE 169.57% 165.01% 90.01% 70.67% 268.47%
Return on Assets (ROA)
Reported ROA 9.59% 13.19% 10.84% 12.41% 13.47%
Adjusted ROA 9.12% 12.97% 10.12% 12.62% 14.48%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Lockheed Martin Corp. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Lockheed Martin Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Lockheed Martin Corp. adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Lockheed Martin Corp. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Lockheed Martin Corp. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Lockheed Martin Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings 5,336 6,920 5,732 6,315 6,833
Net sales 71,043 67,571 65,984 67,044 65,398
Profitability Ratio
Net profit margin1 7.51% 10.24% 8.69% 9.42% 10.45%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings 4,748 6,422 4,975 6,132 6,838
Net sales 71,043 67,571 65,984 67,044 65,398
Profitability Ratio
Adjusted net profit margin2 6.68% 9.50% 7.54% 9.15% 10.46%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 5,336 ÷ 71,043 = 7.51%

2 Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 4,748 ÷ 71,043 = 6.68%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Lockheed Martin Corp. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales 71,043 67,571 65,984 67,044 65,398
Total assets 55,617 52,456 52,880 50,873 50,710
Activity Ratio
Total asset turnover1 1.28 1.29 1.25 1.32 1.29
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales 71,043 67,571 65,984 67,044 65,398
Adjusted total assets 52,060 49,503 49,136 48,583 47,235
Activity Ratio
Adjusted total asset turnover2 1.36 1.36 1.34 1.38 1.38

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 71,043 ÷ 55,617 = 1.28

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 71,043 ÷ 52,060 = 1.36

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Lockheed Martin Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 55,617 52,456 52,880 50,873 50,710
Stockholders’ equity 6,333 6,835 9,266 10,959 6,015
Solvency Ratio
Financial leverage1 8.78 7.67 5.71 4.64 8.43
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 52,060 49,503 49,136 48,583 47,235
Adjusted stockholders’ equity 2,800 3,892 5,527 8,677 2,547
Solvency Ratio
Adjusted financial leverage2 18.59 12.72 8.89 5.60 18.55

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 55,617 ÷ 6,333 = 8.78

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 52,060 ÷ 2,800 = 18.59

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Lockheed Martin Corp. adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings 5,336 6,920 5,732 6,315 6,833
Stockholders’ equity 6,333 6,835 9,266 10,959 6,015
Profitability Ratio
ROE1 84.26% 101.24% 61.86% 57.62% 113.60%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings 4,748 6,422 4,975 6,132 6,838
Adjusted stockholders’ equity 2,800 3,892 5,527 8,677 2,547
Profitability Ratio
Adjusted ROE2 169.57% 165.01% 90.01% 70.67% 268.47%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 5,336 ÷ 6,333 = 84.26%

2 Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted stockholders’ equity
= 100 × 4,748 ÷ 2,800 = 169.57%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Lockheed Martin Corp. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings 5,336 6,920 5,732 6,315 6,833
Total assets 55,617 52,456 52,880 50,873 50,710
Profitability Ratio
ROA1 9.59% 13.19% 10.84% 12.41% 13.47%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings 4,748 6,422 4,975 6,132 6,838
Adjusted total assets 52,060 49,503 49,136 48,583 47,235
Profitability Ratio
Adjusted ROA2 9.12% 12.97% 10.12% 12.62% 14.48%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 5,336 ÷ 55,617 = 9.59%

2 Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 4,748 ÷ 52,060 = 9.12%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Lockheed Martin Corp. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.