Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Lockheed Martin Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 solvency profile exhibits a distinct three-phase trajectory characterized by initial stability, a period of aggressive leverage expansion peaking in mid-2025, and a subsequent trend toward deleveraging through September 2026.
- Debt to Equity and Debt to Capital
- A significant upward trend in the debt-to-equity ratio is observed, rising from 1.16 in March 2022 to a peak of 4.06 in June 2025. This suggests a substantial shift toward debt financing relative to shareholder equity during this period. The debt-to-capital ratio mirrors this movement, increasing from 0.54 to 0.80 over the same timeframe. Following the June 2025 peak, both ratios exhibit a consistent decline, with debt to equity retreating to 2.04 by September 2026, indicating a strategic reduction in long-term liabilities.
- Debt to Assets
- The proportion of assets financed by debt increased steadily from 0.23 in early 2022 to a high of 0.37 in mid-2025. This gradual ascent indicates a systemic increase in the company's total debt load. A modest correction is evident in the final quarters, with the ratio settling at 0.32 by September 2026, reflecting a slight improvement in the asset-backing of total debt.
- Financial Leverage
- Financial leverage demonstrates high volatility, escalating from 5.15 in March 2022 to a peak of 11.04 in June 2025. This sharp increase corresponds with the peak in the debt-to-equity ratio, signifying a period of intensified capital structure aggression. A subsequent contraction is observed, with leverage decreasing to 6.41 by the end of the analyzed period, suggesting a return to a more conservative capital structure.
- Interest Coverage
- An inverse correlation exists between the leverage ratios and the interest coverage ratio. Coverage started at a robust 14.12 in March 2022 but entered a sustained decline, reaching a minimum of 5.50 in June 2025. This contraction indicates a diminished margin of safety for meeting interest obligations as debt levels peaked. However, a recovery trend is evident from July 2025 onward, with the ratio climbing back to 8.03 by September 2026, signaling improved debt-servicing capacity.
Overall, the data indicates a period of significant balance sheet expansion and increased risk through mid-2025, followed by a concerted effort to reduce leverage and restore interest coverage margins in the subsequent quarters.
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Debt to Equity
Lockheed Martin Corp., debt to equity calculation (quarterly data)
| Sep 27, 2026 | Jun 28, 2026 | 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 maturities of long-term debt | —) | —) | 168) | 1,168) | 1,669) | 3,118) | 1,643) | 643) | 142) | 142) | 168) | 168) | 168) | 283) | 115) | 118) | —) | —) | 500) | ||||||
| Long-term debt, net, excluding current maturities | 20,498) | 20,538) | 20,529) | 20,532) | 20,520) | 18,520) | 18,661) | 19,627) | 19,179) | 19,115) | 19,250) | 17,291) | 17,221) | 17,262) | 15,485) | 15,429) | 11,480) | 11,644) | 11,145) | ||||||
| Total debt | 20,498) | 20,538) | 20,697) | 21,700) | 22,189) | 21,638) | 20,304) | 20,270) | 19,321) | 19,257) | 19,418) | 17,459) | 17,389) | 17,545) | 15,600) | 15,547) | 11,480) | 11,644) | 11,645) | ||||||
| Stockholders’ equity | 10,063) | 8,768) | 7,489) | 6,721) | 6,181) | 5,334) | 6,683) | 6,333) | 7,200) | 6,175) | 6,650) | 6,835) | 9,274) | 9,240) | 9,646) | 9,266) | 11,966) | 11,432) | 10,002) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 2.04 | 2.34 | 2.76 | 3.23 | 3.59 | 4.06 | 3.04 | 3.20 | 2.68 | 3.12 | 2.92 | 2.55 | 1.88 | 1.90 | 1.62 | 1.68 | 0.96 | 1.02 | 1.16 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | 7.52 | 7.89 | 9.92 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 2.33 | 2.31 | 2.03 | 2.01 | 2.18 | 2.14 | 1.97 | 1.95 | 2.18 | 2.15 | 1.94 | 1.81 | 2.07 | 2.04 | 2.33 | 2.34 | 2.35 | 2.20 | ||||||
| Eaton Corp. plc | — | 1.02 | 1.07 | 0.51 | 0.57 | 0.59 | 0.54 | 0.50 | 0.49 | 0.51 | 0.48 | 0.49 | 0.50 | 0.52 | 0.50 | 0.51 | 0.56 | 0.59 | 0.58 | ||||||
| GE Aerospace | 1.10 | 1.09 | 1.12 | 1.10 | 1.11 | 0.99 | 1.02 | 1.00 | 1.06 | 1.06 | 0.69 | 0.77 | 0.73 | 0.70 | 0.71 | 0.89 | 0.97 | 0.94 | 0.86 | ||||||
| Honeywell International Inc. | 0.74 | 1.83 | 2.70 | 2.49 | 2.21 | 2.27 | 1.88 | 1.67 | 1.77 | 1.65 | 1.53 | 1.29 | 1.18 | 1.24 | 1.13 | 1.17 | 0.96 | 1.09 | 1.05 | ||||||
| RTX Corp. | 0.54 | 0.56 | 0.56 | 0.58 | 0.61 | 0.67 | 0.67 | 0.69 | 0.69 | 0.71 | 0.71 | 0.73 | 0.51 | 0.49 | 0.47 | 0.44 | 0.48 | 0.45 | 0.43 | ||||||
Based on: 10-Q (reporting date: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 Q3 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 20,498 ÷ 10,063 = 2.04
2 Click competitor name to see calculations.
The company's solvency profile experienced significant volatility between March 2022 and September 2026, characterized by a period of aggressive leverage expansion followed by a measured recovery in equity positions.
- Total Debt Trends
- Total debt exhibited a consistent upward trajectory for the majority of the analyzed period, rising from $11.6 billion in March 2022 to a peak of $22.1 billion in September 2025. Following this peak, debt levels stabilized and slightly contracted, ending at $20.4 billion in September 2026.
- Stockholders' Equity Fluctuations
- Equity levels showed a pronounced decline starting after September 2022, when they peaked at $11.9 billion. A sustained contraction occurred over the subsequent two years, reaching a low of $5.3 billion in June 2025. A recovery trend emerged in the final quarters, with equity returning to $10.0 billion by September 2026.
- Debt to Equity Ratio Analysis
- The debt to equity ratio moved from a balanced position of 0.96 in September 2022 to a high of 4.06 in June 2025. This sharp increase was driven by the simultaneous rise in total liabilities and the erosion of shareholders' equity. In the latter part of the period, the ratio declined steadily to 2.04 by September 2026, signaling an improvement in solvency as equity grew and debt levels plateaued.
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Debt to Capital
Lockheed Martin Corp., debt to capital calculation (quarterly data)
| Sep 27, 2026 | Jun 28, 2026 | Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current maturities of long-term debt | —) | —) | 168) | 1,168) | 1,669) | 3,118) | 1,643) | 643) | 142) | 142) | 168) | 168) | 168) | 283) | 115) | 118) | —) | —) | 500) | ||||||
| Long-term debt, net, excluding current maturities | 20,498) | 20,538) | 20,529) | 20,532) | 20,520) | 18,520) | 18,661) | 19,627) | 19,179) | 19,115) | 19,250) | 17,291) | 17,221) | 17,262) | 15,485) | 15,429) | 11,480) | 11,644) | 11,145) | ||||||
| Total debt | 20,498) | 20,538) | 20,697) | 21,700) | 22,189) | 21,638) | 20,304) | 20,270) | 19,321) | 19,257) | 19,418) | 17,459) | 17,389) | 17,545) | 15,600) | 15,547) | 11,480) | 11,644) | 11,645) | ||||||
| Stockholders’ equity | 10,063) | 8,768) | 7,489) | 6,721) | 6,181) | 5,334) | 6,683) | 6,333) | 7,200) | 6,175) | 6,650) | 6,835) | 9,274) | 9,240) | 9,646) | 9,266) | 11,966) | 11,432) | 10,002) | ||||||
| Total capital | 30,561) | 29,306) | 28,186) | 28,421) | 28,370) | 26,972) | 26,987) | 26,603) | 26,521) | 25,432) | 26,068) | 24,294) | 26,663) | 26,785) | 25,246) | 24,813) | 23,446) | 23,076) | 21,647) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.67 | 0.70 | 0.73 | 0.76 | 0.78 | 0.80 | 0.75 | 0.76 | 0.73 | 0.76 | 0.74 | 0.72 | 0.65 | 0.66 | 0.62 | 0.63 | 0.49 | 0.50 | 0.54 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | 0.88 | 0.89 | 0.91 | 1.18 | 1.07 | 1.07 | 1.08 | 1.69 | 1.45 | 1.55 | 1.49 | 1.47 | 1.42 | 1.39 | 1.39 | 1.45 | 1.35 | 1.36 | ||||||
| Caterpillar Inc. | — | 0.70 | 0.70 | 0.67 | 0.67 | 0.69 | 0.68 | 0.66 | 0.66 | 0.69 | 0.68 | 0.66 | 0.64 | 0.67 | 0.67 | 0.70 | 0.70 | 0.70 | 0.69 | ||||||
| Eaton Corp. plc | — | 0.50 | 0.52 | 0.34 | 0.36 | 0.37 | 0.35 | 0.33 | 0.33 | 0.34 | 0.32 | 0.33 | 0.33 | 0.34 | 0.34 | 0.34 | 0.36 | 0.37 | 0.37 | ||||||
| GE Aerospace | 0.52 | 0.52 | 0.53 | 0.52 | 0.53 | 0.50 | 0.50 | 0.50 | 0.51 | 0.51 | 0.41 | 0.43 | 0.42 | 0.41 | 0.41 | 0.47 | 0.49 | 0.48 | 0.46 | ||||||
| Honeywell International Inc. | 0.43 | 0.65 | 0.73 | 0.71 | 0.69 | 0.69 | 0.65 | 0.63 | 0.64 | 0.62 | 0.61 | 0.56 | 0.54 | 0.55 | 0.53 | 0.54 | 0.49 | 0.52 | 0.51 | ||||||
| RTX Corp. | 0.35 | 0.36 | 0.36 | 0.37 | 0.38 | 0.40 | 0.40 | 0.41 | 0.41 | 0.42 | 0.41 | 0.42 | 0.34 | 0.33 | 0.32 | 0.31 | 0.32 | 0.31 | 0.30 | ||||||
Based on: 10-Q (reporting date: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,498 ÷ 30,561 = 0.67
2 Click competitor name to see calculations.
The financial solvency profile demonstrates a period of significant leverage expansion followed by a moderate deleveraging phase between March 2022 and September 2026.
- Total Debt Trends
- Total debt exhibited a strong upward trajectory, increasing from 11,645 million USD in March 2022 to a peak of 22,189 million USD in September 2025. A notable escalation occurred in the fourth quarter of 2022, where debt rose from 11,480 million USD to 15,547 million USD. In the final year of the observed period, a gradual reduction is evident, with debt levels settling at 20,498 million USD by September 2026.
- Total Capital Evolution
- Total capital grew from 21,647 million USD in March 2022 to 30,561 million USD by September 2026. While the overall trend is positive, a temporary contraction was recorded in December 2023, when capital decreased to 24,294 million USD before resuming a steady growth path through 2026.
- Debt to Capital Ratio Dynamics
- The debt to capital ratio reflects a substantial increase in financial leverage over the majority of the analyzed period. Starting at 0.54 in March 2022, the ratio reached a minimum of 0.49 in September 2022 before climbing consistently. The ratio peaked at 0.80 in March 2025, indicating a period of maximum leverage. Following this peak, a consistent downward trend is observed, with the ratio declining to 0.67 by September 2026, suggesting a strategic shift toward reducing the proportion of debt relative to the total capital base.
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Debt to Assets
Lockheed Martin Corp., debt to assets calculation (quarterly data)
| Sep 27, 2026 | Jun 28, 2026 | 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 maturities of long-term debt | —) | —) | 168) | 1,168) | 1,669) | 3,118) | 1,643) | 643) | 142) | 142) | 168) | 168) | 168) | 283) | 115) | 118) | —) | —) | 500) | ||||||
| Long-term debt, net, excluding current maturities | 20,498) | 20,538) | 20,529) | 20,532) | 20,520) | 18,520) | 18,661) | 19,627) | 19,179) | 19,115) | 19,250) | 17,291) | 17,221) | 17,262) | 15,485) | 15,429) | 11,480) | 11,644) | 11,145) | ||||||
| Total debt | 20,498) | 20,538) | 20,697) | 21,700) | 22,189) | 21,638) | 20,304) | 20,270) | 19,321) | 19,257) | 19,418) | 17,459) | 17,389) | 17,545) | 15,600) | 15,547) | 11,480) | 11,644) | 11,645) | ||||||
| Total assets | 64,510) | 62,450) | 59,238) | 59,840) | 60,276) | 58,870) | 56,669) | 55,617) | 55,520) | 55,076) | 54,963) | 52,456) | 56,666) | 56,978) | 54,622) | 52,880) | 52,030) | 51,758) | 51,510) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.32 | 0.33 | 0.35 | 0.36 | 0.37 | 0.37 | 0.36 | 0.36 | 0.35 | 0.35 | 0.35 | 0.33 | 0.31 | 0.31 | 0.29 | 0.29 | 0.22 | 0.22 | 0.23 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | 0.28 | 0.29 | 0.32 | 0.36 | 0.34 | 0.34 | 0.34 | 0.42 | 0.41 | 0.36 | 0.38 | 0.39 | 0.39 | 0.41 | 0.42 | 0.42 | 0.42 | 0.43 | ||||||
| Caterpillar Inc. | — | 0.44 | 0.45 | 0.44 | 0.44 | 0.45 | 0.45 | 0.44 | 0.44 | 0.45 | 0.45 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | ||||||
| Eaton Corp. plc | — | 0.37 | 0.38 | 0.24 | 0.26 | 0.27 | 0.26 | 0.24 | 0.24 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.28 | 0.27 | ||||||
| GE Aerospace | 0.15 | 0.15 | 0.16 | 0.16 | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.17 | 0.17 | 0.18 | 0.18 | ||||||
| Honeywell International Inc. | 0.31 | 0.44 | 0.50 | 0.47 | 0.46 | 0.47 | 0.44 | 0.41 | 0.42 | 0.40 | 0.38 | 0.33 | 0.33 | 0.34 | 0.32 | 0.31 | 0.28 | 0.31 | 0.31 | ||||||
| RTX Corp. | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.22 | 0.22 | 0.21 | 0.20 | 0.21 | 0.20 | 0.20 | ||||||
Based on: 10-Q (reporting date: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,498 ÷ 64,510 = 0.32
2 Click competitor name to see calculations.
The analysis of solvency metrics over the period from March 2022 to September 2026 reveals a distinct cycle of increasing leverage followed by a period of stabilization and gradual deleveraging. The primary trend is characterized by a significant expansion of debt relative to assets between late 2022 and mid-2025, followed by a corrective trend in the final quarters of the observed period.
- Total Debt Evolution
- Total debt remained relatively stable throughout the first three quarters of 2022 before experiencing a sharp increase in December 2022, rising from approximately 11.5 billion USD to 15.5 billion USD. This upward trajectory continued consistently, reaching a peak of 22.19 billion USD in September 2025. From that point, a modest downward trend is observed, with total debt receding to 20.50 billion USD by September 2026.
- Total Asset Growth
- Total assets exhibited a general upward trend, growing from 51.51 billion USD in March 2022 to 64.51 billion USD by September 2026. While the growth was largely consistent, a notable temporary contraction occurred in December 2023, where assets dipped to 52.46 billion USD before resuming a strong growth trajectory throughout 2024 and 2025.
- Debt to Assets Ratio Dynamics
- The debt to assets ratio reflects the interplay between rising liabilities and expanding assets. The ratio was stable at 0.22 to 0.23 during the first half of 2022 but climbed steadily as debt growth outpaced asset accumulation. The ratio reached its maximum value of 0.37 between June and September 2025, indicating a period of peak financial leverage. In the subsequent year, the ratio began a steady decline, falling to 0.32 by September 2026. This reduction suggests a strategic shift toward improving solvency or a period of accelerated asset growth relative to new debt issuance.
In summary, the financial profile shifted from a low-leverage position in early 2022 to a more leveraged state by mid-2025, before trending back toward a more conservative solvency position by the end of the analyzed period.
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Financial Leverage
Lockheed Martin Corp., financial leverage calculation (quarterly data)
| Sep 27, 2026 | Jun 28, 2026 | 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) | |||||||||||||||||||||||||
| Total assets | 64,510) | 62,450) | 59,238) | 59,840) | 60,276) | 58,870) | 56,669) | 55,617) | 55,520) | 55,076) | 54,963) | 52,456) | 56,666) | 56,978) | 54,622) | 52,880) | 52,030) | 51,758) | 51,510) | ||||||
| Stockholders’ equity | 10,063) | 8,768) | 7,489) | 6,721) | 6,181) | 5,334) | 6,683) | 6,333) | 7,200) | 6,175) | 6,650) | 6,835) | 9,274) | 9,240) | 9,646) | 9,266) | 11,966) | 11,432) | 10,002) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 6.41 | 7.12 | 7.91 | 8.90 | 9.75 | 11.04 | 8.48 | 8.78 | 7.71 | 8.92 | 8.27 | 7.67 | 6.11 | 6.17 | 5.66 | 5.71 | 4.35 | 4.53 | 5.15 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | 27.19 | 27.52 | 30.85 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 5.29 | 5.12 | 4.62 | 4.54 | 4.84 | 4.70 | 4.50 | 4.45 | 4.86 | 4.75 | 4.49 | 4.24 | 4.68 | 4.61 | 5.16 | 5.19 | 5.16 | 4.82 | ||||||
| Eaton Corp. plc | — | 2.77 | 2.79 | 2.12 | 2.16 | 2.18 | 2.12 | 2.08 | 2.05 | 2.05 | 2.00 | 2.02 | 2.03 | 2.05 | 2.04 | 2.06 | 2.14 | 2.15 | 2.12 | ||||||
| GE Aerospace | 7.26 | 7.24 | 7.11 | 6.97 | 6.82 | 6.55 | 6.45 | 6.37 | 6.71 | 6.62 | 5.49 | 5.96 | 5.47 | 5.23 | 5.20 | 5.16 | 5.75 | 5.35 | 4.92 | ||||||
| Honeywell International Inc. | 2.37 | 4.17 | 5.44 | 5.30 | 4.82 | 4.87 | 4.31 | 4.04 | 4.22 | 4.09 | 3.99 | 3.88 | 3.56 | 3.60 | 3.54 | 3.73 | 3.40 | 3.55 | 3.45 | ||||||
| RTX Corp. | 2.55 | 2.62 | 2.57 | 2.62 | 2.61 | 2.68 | 2.68 | 2.71 | 2.70 | 2.73 | 2.65 | 2.71 | 2.33 | 2.24 | 2.22 | 2.19 | 2.25 | 2.26 | 2.20 | ||||||
Based on: 10-Q (reporting date: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 Q3 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 64,510 ÷ 10,063 = 6.41
2 Click competitor name to see calculations.
An analysis of the financial leverage over the observed period reveals a cyclical pattern characterized by a significant increase in risk exposure followed by a gradual deleveraging phase. While total assets maintained a consistent growth trajectory, increasing from 51,510 million USD in March 2022 to 64,510 million USD by September 2026, stockholders' equity experienced substantial volatility, which served as the primary driver for fluctuations in the financial leverage ratio.
- Financial Leverage Trajectory
- The leverage ratio began at 5.15 in March 2022 and showed a slight initial decline to 4.35 by September 2022. A sharp upward trend commenced in December 2022, with the ratio escalating to 7.67 by December 2023 and eventually reaching a peak of 11.04 in June 2025. Following this peak, a consistent deleveraging trend is observed, with the ratio descending to 6.41 by September 2026.
- Equity Volatility and Impact
- The expansion of financial leverage was predominantly driven by a contraction in stockholders' equity. Equity decreased from 11,966 million USD in September 2022 to a minimum of 5,334 million USD in June 2025. This reduction in the equity base, occurring simultaneously with rising total assets, resulted in the peak leverage observed in mid-2025. The subsequent recovery of equity to 10,063 million USD by September 2026 directly contributed to the reduction of the leverage ratio.
- Asset Growth Patterns
- Total assets demonstrated a steady upward trend, growing by approximately 25% over the analyzed period. Although a moderate contraction occurred in December 2023, the overall movement was positive. Because the growth in assets remained relatively stable while the equity base fluctuated, the company's reliance on debt or other liabilities relative to equity increased significantly between 2023 and early 2025 before stabilizing toward the end of the period.
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Interest Coverage
Lockheed Martin Corp., interest coverage calculation (quarterly data)
| Sep 27, 2026 | Jun 28, 2026 | 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) | |||||||||||||||||||||||||
| Net earnings | 1,845) | 1,836) | 1,488) | 1,344) | 1,619) | 342) | 1,712) | 527) | 1,623) | 1,641) | 1,545) | 1,866) | 1,684) | 1,681) | 1,689) | 1,912) | 1,778) | 309) | 1,733) | ||||||
| Add: Income tax expense | 327) | 342) | 286) | 187) | 319) | 75) | 324) | (8) | 295) | 307) | 290) | 279) | 269) | 325) | 305) | 278) | 321) | 21) | 328) | ||||||
| Add: Interest expense | 264) | 266) | 269) | 290) | 286) | 274) | 268) | 264) | 256) | 261) | 255) | 254) | 237) | 223) | 202) | 202) | 145) | 141) | 135) | ||||||
| Earnings before interest and tax (EBIT) | 2,436) | 2,444) | 2,043) | 1,821) | 2,224) | 691) | 2,304) | 783) | 2,174) | 2,209) | 2,090) | 2,399) | 2,190) | 2,229) | 2,196) | 2,392) | 2,244) | 471) | 2,196) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 8.03 | 7.68 | 6.06 | 6.30 | 5.50 | 5.60 | 7.12 | 7.00 | 8.65 | 8.83 | 9.19 | 9.84 | 10.42 | 11.74 | 10.58 | 11.72 | 13.31 | 10.88 | 14.12 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | 2.08 | 1.96 | 1.95 | -2.41 | -2.72 | -3.10 | -3.48 | -2.16 | -0.23 | 0.21 | 0.18 | -0.06 | -0.85 | -0.53 | -0.98 | -2.54 | -1.40 | -1.31 | ||||||
| Caterpillar Inc. | — | 27.68 | 24.64 | 24.21 | 25.46 | 25.81 | 26.67 | 27.21 | 26.28 | 26.88 | 27.68 | 26.66 | 24.81 | 23.80 | 21.33 | 20.80 | 22.05 | 20.08 | 19.10 | ||||||
| Eaton Corp. plc | — | 11.86 | 16.48 | 21.46 | 23.55 | 28.05 | 36.65 | 36.12 | 40.37 | 37.97 | 32.04 | 26.34 | 22.25 | 19.68 | 19.85 | 21.22 | 21.33 | 24.31 | 22.57 | ||||||
| GE Aerospace | 12.51 | 12.27 | 12.53 | 12.86 | 12.56 | 11.46 | 9.44 | 8.73 | 7.93 | 6.25 | 6.11 | 10.12 | 9.41 | 8.49 | 6.73 | 1.88 | -1.66 | -1.16 | -1.49 | ||||||
| Honeywell International Inc. | 8.38 | 8.13 | 4.32 | 5.07 | 6.46 | 6.54 | 7.24 | 7.82 | 8.40 | 9.33 | 9.89 | 10.36 | 10.68 | 12.45 | 14.34 | 16.41 | 20.95 | 20.60 | 21.35 | ||||||
Based on: 10-Q (reporting date: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (2,436 + 2,444 + 2,043 + 1,821)
÷ (264 + 266 + 269 + 290)
= 8.03
2 Click competitor name to see calculations.
The overall solvency position regarding interest obligations exhibits a long-term decline in coverage, primarily driven by a steady increase in interest expenses combined with periodic volatility in operational earnings.
- Earnings Before Interest and Tax (EBIT)
- Operational earnings display significant quarterly fluctuations, typically oscillating between 2,000 and 2,400 million USD. Notable contractions occurred in June 2022, December 2024, and June 2025, where earnings dropped to 471, 783, and 691 million USD, respectively. These troughs create temporary pressure on the capacity to cover financial obligations.
- Interest Expense
- A consistent upward trajectory is observed in interest expenditures, rising from 135 million USD in March 2022 to a peak of 290 million USD by December 2025. This sustained growth indicates a significant increase in the cost of debt servicing over the analyzed timeframe.
- Interest Coverage Ratio
- The interest coverage ratio demonstrates a clear downward trend, falling from a high of 14.12 in March 2022 to a low of 5.50 in June 2025. This erosion reflects the dual impact of rising interest costs and unstable EBIT. A recovery phase is evident beginning in late 2025, with the ratio improving to 8.03 by September 2026, coinciding with a stabilization of interest expenses and a return to higher quarterly EBIT levels.
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