Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Lockheed Martin Corp., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Lockheed Martin Corp. debt to equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Lockheed Martin Corp. debt to equity ratio (including operating lease liability) deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Lockheed Martin Corp. debt to capital ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Lockheed Martin Corp. debt to capital ratio (including operating lease liability) deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Lockheed Martin Corp. debt to assets ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Lockheed Martin Corp. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Lockheed Martin Corp. financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Lockheed Martin Corp. interest coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Lockheed Martin Corp. fixed charge coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Debt to Equity
Lockheed Martin Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 643) | 168) | 118) | 6) | 500) | |
| Long-term debt, net, excluding current portion | 19,627) | 17,291) | 15,429) | 11,670) | 11,669) | |
| Total debt | 20,270) | 17,459) | 15,547) | 11,676) | 12,169) | |
| Stockholders’ equity | 6,333) | 6,835) | 9,266) | 10,959) | 6,015) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 3.20 | 2.55 | 1.68 | 1.07 | 2.02 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 1.97 | 1.94 | 2.33 | 2.29 | 2.42 | |
| Eaton Corp. plc | 0.50 | 0.49 | 0.51 | 0.52 | 0.54 | |
| GE Aerospace | 1.00 | 0.77 | 0.89 | 0.87 | 2.11 | |
| Honeywell International Inc. | 1.67 | 1.29 | 1.17 | 1.06 | 1.28 | |
| RTX Corp. | 0.69 | 0.73 | 0.44 | 0.43 | 0.44 | |
| Debt to Equity, Sector | ||||||
| Capital Goods | 1.54 | 1.54 | 1.33 | 1.26 | 1.75 | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.39 | 1.52 | 1.42 | 1.37 | 1.82 | |
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).
1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 20,270 ÷ 6,333 = 3.20
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Lockheed Martin Corp. debt to equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Debt to Equity (including Operating Lease Liability)
Lockheed Martin Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 643) | 168) | 118) | 6) | 500) | |
| Long-term debt, net, excluding current portion | 19,627) | 17,291) | 15,429) | 11,670) | 11,669) | |
| Total debt | 20,270) | 17,459) | 15,547) | 11,676) | 12,169) | |
| Current operating lease liabilities | 315) | 315) | 301) | 300) | 274) | |
| Noncurrent operating lease liabilities | 833) | 862) | 916) | 1,100) | 841) | |
| Total debt (including operating lease liability) | 21,418) | 18,636) | 16,764) | 13,076) | 13,284) | |
| Stockholders’ equity | 6,333) | 6,835) | 9,266) | 10,959) | 6,015) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 3.38 | 2.73 | 1.81 | 1.19 | 2.21 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 2.00 | 1.97 | 2.37 | 2.33 | 2.46 | |
| Eaton Corp. plc | 0.54 | 0.52 | 0.54 | 0.55 | 0.57 | |
| GE Aerospace | 1.05 | 0.84 | 0.96 | 0.94 | 2.20 | |
| Honeywell International Inc. | 1.73 | 1.36 | 1.23 | 1.11 | 1.32 | |
| RTX Corp. | 0.72 | 0.76 | 0.47 | 0.46 | 0.47 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 1.60 | 1.61 | 1.39 | 1.32 | 1.81 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.55 | 1.71 | 1.59 | 1.54 | 2.00 | |
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).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 21,418 ÷ 6,333 = 3.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Lockheed Martin Corp. debt to equity ratio (including operating lease liability) deteriorated from 2022 to 2023 and from 2023 to 2024. |
Debt to Capital
Lockheed Martin Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 643) | 168) | 118) | 6) | 500) | |
| Long-term debt, net, excluding current portion | 19,627) | 17,291) | 15,429) | 11,670) | 11,669) | |
| Total debt | 20,270) | 17,459) | 15,547) | 11,676) | 12,169) | |
| Stockholders’ equity | 6,333) | 6,835) | 9,266) | 10,959) | 6,015) | |
| Total capital | 26,603) | 24,294) | 24,813) | 22,635) | 18,184) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.76 | 0.72 | 0.63 | 0.52 | 0.67 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.08 | 1.49 | 1.39 | 1.35 | 1.40 | |
| Caterpillar Inc. | 0.66 | 0.66 | 0.70 | 0.70 | 0.71 | |
| Eaton Corp. plc | 0.33 | 0.33 | 0.34 | 0.34 | 0.35 | |
| GE Aerospace | 0.50 | 0.43 | 0.47 | 0.47 | 0.68 | |
| Honeywell International Inc. | 0.63 | 0.56 | 0.54 | 0.51 | 0.56 | |
| RTX Corp. | 0.41 | 0.42 | 0.31 | 0.30 | 0.31 | |
| Debt to Capital, Sector | ||||||
| Capital Goods | 0.61 | 0.61 | 0.57 | 0.56 | 0.64 | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.58 | 0.60 | 0.59 | 0.58 | 0.65 | |
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).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,270 ÷ 26,603 = 0.76
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Lockheed Martin Corp. debt to capital ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Debt to Capital (including Operating Lease Liability)
Lockheed Martin Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 643) | 168) | 118) | 6) | 500) | |
| Long-term debt, net, excluding current portion | 19,627) | 17,291) | 15,429) | 11,670) | 11,669) | |
| Total debt | 20,270) | 17,459) | 15,547) | 11,676) | 12,169) | |
| Current operating lease liabilities | 315) | 315) | 301) | 300) | 274) | |
| Noncurrent operating lease liabilities | 833) | 862) | 916) | 1,100) | 841) | |
| Total debt (including operating lease liability) | 21,418) | 18,636) | 16,764) | 13,076) | 13,284) | |
| Stockholders’ equity | 6,333) | 6,835) | 9,266) | 10,959) | 6,015) | |
| Total capital (including operating lease liability) | 27,751) | 25,471) | 26,030) | 24,035) | 19,299) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.77 | 0.73 | 0.64 | 0.54 | 0.69 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.08 | 1.47 | 1.37 | 1.34 | 1.39 | |
| Caterpillar Inc. | 0.67 | 0.66 | 0.70 | 0.70 | 0.71 | |
| Eaton Corp. plc | 0.35 | 0.34 | 0.35 | 0.36 | 0.36 | |
| GE Aerospace | 0.51 | 0.46 | 0.49 | 0.49 | 0.69 | |
| Honeywell International Inc. | 0.63 | 0.58 | 0.55 | 0.53 | 0.57 | |
| RTX Corp. | 0.42 | 0.43 | 0.32 | 0.31 | 0.32 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.62 | 0.62 | 0.58 | 0.57 | 0.64 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.61 | 0.63 | 0.61 | 0.61 | 0.67 | |
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).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 21,418 ÷ 27,751 = 0.77
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Lockheed Martin Corp. debt to capital ratio (including operating lease liability) deteriorated from 2022 to 2023 and from 2023 to 2024. |
Debt to Assets
Lockheed Martin Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 643) | 168) | 118) | 6) | 500) | |
| Long-term debt, net, excluding current portion | 19,627) | 17,291) | 15,429) | 11,670) | 11,669) | |
| Total debt | 20,270) | 17,459) | 15,547) | 11,676) | 12,169) | |
| Total assets | 55,617) | 52,456) | 52,880) | 50,873) | 50,710) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.36 | 0.33 | 0.29 | 0.23 | 0.24 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.34 | 0.38 | 0.42 | 0.42 | 0.42 | |
| Caterpillar Inc. | 0.44 | 0.43 | 0.45 | 0.46 | 0.47 | |
| Eaton Corp. plc | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | |
| GE Aerospace | 0.16 | 0.13 | 0.17 | 0.18 | 0.30 | |
| Honeywell International Inc. | 0.41 | 0.33 | 0.31 | 0.30 | 0.35 | |
| RTX Corp. | 0.25 | 0.27 | 0.20 | 0.20 | 0.20 | |
| Debt to Assets, Sector | ||||||
| Capital Goods | 0.31 | 0.29 | 0.28 | 0.28 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.31 | 0.31 | 0.31 | 0.30 | 0.33 | |
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).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,270 ÷ 55,617 = 0.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Lockheed Martin Corp. debt to assets ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Debt to Assets (including Operating Lease Liability)
Lockheed Martin Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 643) | 168) | 118) | 6) | 500) | |
| Long-term debt, net, excluding current portion | 19,627) | 17,291) | 15,429) | 11,670) | 11,669) | |
| Total debt | 20,270) | 17,459) | 15,547) | 11,676) | 12,169) | |
| Current operating lease liabilities | 315) | 315) | 301) | 300) | 274) | |
| Noncurrent operating lease liabilities | 833) | 862) | 916) | 1,100) | 841) | |
| Total debt (including operating lease liability) | 21,418) | 18,636) | 16,764) | 13,076) | 13,284) | |
| Total assets | 55,617) | 52,456) | 52,880) | 50,873) | 50,710) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.39 | 0.36 | 0.32 | 0.26 | 0.26 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.36 | 0.40 | 0.43 | 0.43 | 0.43 | |
| Caterpillar Inc. | 0.44 | 0.44 | 0.46 | 0.46 | 0.48 | |
| Eaton Corp. plc | 0.26 | 0.26 | 0.26 | 0.27 | 0.27 | |
| GE Aerospace | 0.17 | 0.14 | 0.19 | 0.19 | 0.31 | |
| Honeywell International Inc. | 0.43 | 0.35 | 0.33 | 0.32 | 0.36 | |
| RTX Corp. | 0.27 | 0.28 | 0.21 | 0.21 | 0.21 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.32 | 0.30 | 0.30 | 0.29 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.35 | 0.35 | 0.34 | 0.34 | 0.36 | |
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).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 21,418 ÷ 55,617 = 0.39
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Lockheed Martin Corp. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 and from 2023 to 2024. |
Financial Leverage
Lockheed Martin Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 4.50 | 4.49 | 5.16 | 5.02 | 5.11 | |
| Eaton Corp. plc | 2.08 | 2.02 | 2.06 | 2.07 | 2.13 | |
| GE Aerospace | 6.37 | 5.96 | 5.16 | 4.93 | 7.13 | |
| Honeywell International Inc. | 4.04 | 3.88 | 3.73 | 3.47 | 3.68 | |
| RTX Corp. | 2.71 | 2.71 | 2.19 | 2.21 | 2.25 | |
| Financial Leverage, Sector | ||||||
| Capital Goods | 5.05 | 5.35 | 4.71 | 4.55 | 5.54 | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.49 | 4.94 | 4.65 | 4.52 | 5.49 | |
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).
1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 55,617 ÷ 6,333 = 8.78
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Lockheed Martin Corp. financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024. |
Interest Coverage
Lockheed Martin Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 5,336) | 6,920) | 5,732) | 6,315) | 6,833) | |
| Less: Net loss from discontinued operations | —) | —) | —) | —) | (55) | |
| Add: Income tax expense | 884) | 1,178) | 948) | 1,235) | 1,347) | |
| Add: Interest expense | 1,036) | 916) | 623) | 569) | 591) | |
| Earnings before interest and tax (EBIT) | 7,256) | 9,014) | 7,303) | 8,119) | 8,826) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 7.00 | 9.84 | 11.72 | 14.27 | 14.93 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | -3.48 | 0.18 | -0.98 | -0.88 | -5.71 | |
| Caterpillar Inc. | 27.21 | 26.66 | 20.80 | 17.88 | 8.80 | |
| Eaton Corp. plc | 36.12 | 26.34 | 21.22 | 21.11 | 12.72 | |
| GE Aerospace | 8.73 | 10.12 | 1.88 | -0.96 | 2.59 | |
| Honeywell International Inc. | 7.82 | 10.36 | 16.41 | 22.09 | 17.75 | |
| RTX Corp. | 4.14 | 3.32 | 5.64 | 4.71 | -0.65 | |
| Interest Coverage, Sector | ||||||
| Capital Goods | 4.92 | 6.84 | 4.84 | 3.98 | 1.99 | |
| Interest Coverage, Industry | ||||||
| Industrials | 5.79 | 6.64 | 4.98 | 5.14 | 1.25 | |
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).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 7,256 ÷ 1,036 = 7.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Lockheed Martin Corp. interest coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Fixed Charge Coverage
Lockheed Martin Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 5,336) | 6,920) | 5,732) | 6,315) | 6,833) | |
| Less: Net loss from discontinued operations | —) | —) | —) | —) | (55) | |
| Add: Income tax expense | 884) | 1,178) | 948) | 1,235) | 1,347) | |
| Add: Interest expense | 1,036) | 916) | 623) | 569) | 591) | |
| Earnings before interest and tax (EBIT) | 7,256) | 9,014) | 7,303) | 8,119) | 8,826) | |
| Add: Operating lease expense | 260) | 273) | 275) | 275) | 223) | |
| Earnings before fixed charges and tax | 7,516) | 9,287) | 7,578) | 8,394) | 9,049) | |
| Interest expense | 1,036) | 916) | 623) | 569) | 591) | |
| Operating lease expense | 260) | 273) | 275) | 275) | 223) | |
| Fixed charges | 1,296) | 1,189) | 898) | 844) | 814) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.80 | 7.81 | 8.44 | 9.95 | 11.12 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | -2.69 | 0.31 | -0.70 | -0.64 | -4.75 | |
| Caterpillar Inc. | 20.25 | 19.73 | 14.92 | 12.73 | 6.58 | |
| Eaton Corp. plc | 13.79 | 11.90 | 10.01 | 10.40 | 6.24 | |
| GE Aerospace | 6.19 | 5.25 | 1.35 | -0.22 | 1.93 | |
| Honeywell International Inc. | 6.44 | 8.13 | 11.00 | 13.67 | 11.49 | |
| RTX Corp. | 3.59 | 2.81 | 4.40 | 3.66 | -0.22 | |
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | 4.03 | 5.14 | 3.61 | 3.06 | 1.66 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 3.96 | 4.32 | 3.30 | 3.44 | 1.12 | |
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).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,516 ÷ 1,296 = 5.80
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Lockheed Martin Corp. fixed charge coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |