Lockheed Martin Corp. (NYSE:LMT)

The analysis of the annual financial data reveals several notable trends in asset composition over the observed periods.

Cash and Cash Equivalents

The proportion of cash and cash equivalents relative to total assets initially increased from 6.23% in 2020 to 7.08% in 2021, indicating an improvement in liquidity. However, it subsequently declined sharply to 2.75% in 2023 before slightly recovering to 4.46% in 2024. This pattern suggests fluctuations in liquid asset holdings over the five-year span.

Receivables, Net

The share of net receivables as a percentage of total assets remained relatively stable, with minor fluctuations between 3.9% and 4.74%. The peak in 2022 at 4.74% could indicate an increase in credit sales or delayed collections, followed by a slight normalization in subsequent years.

Contract Assets

Contract assets showed a consistent upward trend from 18.82% in 2020 to a peak of 25.13% in 2023, before slightly decreasing to 23.3% in 2024. This growth points to an increasing amount of revenue recognized for work performed but not yet billed, which may reflect expanding contract operations or changes in contract terms.

Inventories

Inventory levels maintained a relatively steady proportion, ranging narrowly between 5.84% and 6.99%. The slight decline from 6.99% in 2020 to around 5.8% in the subsequent years, then a gradual rise to 6.25% in 2024, suggests stable inventory management with minor adjustments.

Other Current Assets

The ratio of other current assets to total assets decreased from 2.27% in 2020 to 1.01% in 2022, followed by slight recovery to around 1.05% by 2024. This decline may indicate a reduction or reclassification of miscellaneous current asset items.

Current Assets (Aggregate)

Total current assets as a percentage of total assets displayed overall stability, fluctuating slightly between 38.21% and 39.7%. This consistency implies a balanced approach toward managing short-term asset holdings.

Property, Plant, and Equipment, Net

Investment in net property, plant, and equipment increased steadily from 14.22% in 2020 to a peak of 15.96% in 2023, before a marginal decline to 15.69% in 2024. This upward movement reflects ongoing capital expenditures or asset enhancements supporting operational capacity.

Goodwill

Goodwill as a proportion of total assets gradually decreased from 21.31% in 2020 to 19.9% in 2024. The steady decline might suggest impairment charges, divestitures, or relative growth of other asset components outpacing goodwill.

Intangible Assets, Net

Net intangible assets consistently declined from 5.94% in 2020 to 3.62% in 2024. The downward trend may indicate amortization expense effects or disposals impacting this asset category.

Deferred Income Taxes

The percentage of deferred income taxes fluctuated significantly, dropping from 6.85% in 2020 to 4.5% in 2021, rising again to 7.08% in 2022, and settling around 6.4% in 2024. These changes might reflect alterations in tax strategies or timing differences in recognizing tax assets and liabilities.

Other Noncurrent Assets

Other noncurrent assets showed moderate variability, increasing from 13.46% in 2020 to 15.11% in 2024, with some fluctuations in interim years. This trend indicates a relatively larger allocation to miscellaneous noncurrent holdings over time.

Noncurrent Assets (Aggregate)

The overall proportion of noncurrent assets to total assets remained stable, ranging narrowly around 60%, indicating a consistent asset structure with balanced long-term investments throughout the period.