Stock Analysis on Net

Lockheed Martin Corp. (NYSE:LMT)

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Lockheed Martin Corp., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 12.55% 12.56% 13.52% 13.23% 13.99%
Operating profit margin 12.59% 12.65% 13.61% 13.22% 14.29%
Net profit margin 10.24% 8.69% 9.42% 10.45% 10.42%
Return on Investment
Return on equity (ROE) 101.24% 61.86% 57.62% 113.60% 199.23%
Return on assets (ROA) 13.19% 10.84% 12.41% 13.47% 13.11%

Based on: 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), 10-K (reporting date: 2019-12-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Lockheed Martin Corp. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Lockheed Martin Corp. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Lockheed Martin Corp. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Lockheed Martin Corp. ROE improved from 2021 to 2022 and from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Lockheed Martin Corp. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Gross Profit Margin

Lockheed Martin Corp., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Gross profit 8,479 8,287 9,061 8,654 8,367
Net sales 67,571 65,984 67,044 65,398 59,812
Profitability Ratio
Gross profit margin1 12.55% 12.56% 13.52% 13.23% 13.99%
Benchmarks
Gross Profit Margin, Competitors2
Boeing Co. 9.93% 5.26% 4.84% -9.78% 5.83%
Caterpillar Inc. 33.04% 26.91% 26.30% 25.47% 27.83%
Eaton Corp. plc 36.36% 33.19% 32.28% 30.52% 32.97%
GE Aerospace 21.95% 24.55% 24.19% 17.26% 23.52%
Honeywell International Inc. 37.28% 36.99% 35.85% 32.07% 33.70%
RTX Corp. 17.54% 20.38% 19.40% 15.08% 25.93%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 8,479 ÷ 67,571 = 12.55%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Lockheed Martin Corp. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Operating Profit Margin

Lockheed Martin Corp., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Operating profit 8,507 8,348 9,123 8,644 8,545
Net sales 67,571 65,984 67,044 65,398 59,812
Profitability Ratio
Operating profit margin1 12.59% 12.65% 13.61% 13.22% 14.29%
Benchmarks
Operating Profit Margin, Competitors2
Boeing Co. -0.99% -5.33% -4.66% -21.95% -2.58%
Caterpillar Inc. 20.30% 13.97% 14.27% 11.67% 16.33%
Eaton Corp. plc 16.75% 14.55% 15.69% 11.45% 13.38%
GE Aerospace 8.49% 6.05% 8.58% 5.49% 12.84%
Honeywell International Inc. 19.32% 18.12% 18.03% 17.45% 18.66%
RTX Corp. 5.17% 8.07% 7.70% -3.34% 11.64%
Operating Profit Margin, Sector
Capital Goods 10.11% 8.29% 9.11% 3.00% 10.93%
Operating Profit Margin, Industry
Industrials 10.07% 9.34% 9.80% 4.43% 9.67%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 8,507 ÷ 67,571 = 12.59%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Lockheed Martin Corp. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

Lockheed Martin Corp., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net earnings 6,920 5,732 6,315 6,833 6,230
Net sales 67,571 65,984 67,044 65,398 59,812
Profitability Ratio
Net profit margin1 10.24% 8.69% 9.42% 10.45% 10.42%
Benchmarks
Net Profit Margin, Competitors2
Boeing Co. -2.86% -7.41% -6.75% -20.42% -0.83%
Caterpillar Inc. 16.18% 11.85% 13.47% 7.68% 12.00%
Eaton Corp. plc 13.87% 11.86% 10.92% 7.90% 10.34%
GE Aerospace 14.68% 0.31% -9.17% 7.81% -5.69%
Honeywell International Inc. 15.43% 14.00% 16.11% 14.64% 16.73%
RTX Corp. 4.64% 7.75% 6.00% -6.22% 7.19%
Net Profit Margin, Sector
Capital Goods 9.09% 5.27% 3.71% 1.85% 5.03%
Net Profit Margin, Industry
Industrials 8.61% 5.27% 6.43% 1.43% 3.90%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 6,920 ÷ 67,571 = 10.24%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Lockheed Martin Corp. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Return on Equity (ROE)

Lockheed Martin Corp., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net earnings 6,920 5,732 6,315 6,833 6,230
Stockholders’ equity 6,835 9,266 10,959 6,015 3,127
Profitability Ratio
ROE1 101.24% 61.86% 57.62% 113.60% 199.23%
Benchmarks
ROE, Competitors2
Boeing Co.
Caterpillar Inc. 53.02% 42.25% 39.37% 19.56% 41.77%
Eaton Corp. plc 16.90% 14.45% 13.06% 9.44% 13.75%
GE Aerospace 34.63% 0.62% -16.17% 16.04% -17.58%
Honeywell International Inc. 35.68% 29.74% 29.85% 27.23% 33.22%
RTX Corp. 5.34% 7.16% 5.29% -4.88% 13.25%
ROE, Sector
Capital Goods 27.89% 13.39% 8.48% 4.42% 18.11%
ROE, Industry
Industrials 27.68% 15.53% 16.58% 3.94% 13.76%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 6,920 ÷ 6,835 = 101.24%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Lockheed Martin Corp. ROE improved from 2021 to 2022 and from 2022 to 2023.

Return on Assets (ROA)

Lockheed Martin Corp., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net earnings 6,920 5,732 6,315 6,833 6,230
Total assets 52,456 52,880 50,873 50,710 47,528
Profitability Ratio
ROA1 13.19% 10.84% 12.41% 13.47% 13.11%
Benchmarks
ROA, Competitors2
Boeing Co. -1.62% -3.60% -3.03% -7.80% -0.48%
Caterpillar Inc. 11.81% 8.18% 7.84% 3.83% 7.77%
Eaton Corp. plc 8.37% 7.03% 6.30% 4.43% 6.74%
GE Aerospace 5.81% 0.12% -3.28% 2.25% -1.87%
Honeywell International Inc. 9.20% 7.97% 8.60% 7.40% 10.47%
RTX Corp. 1.97% 3.27% 2.39% -2.17% 3.96%
ROA, Sector
Capital Goods 5.21% 2.84% 1.86% 0.80% 2.72%
ROA, Industry
Industrials 5.75% 3.46% 3.83% 0.74% 2.39%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 6,920 ÷ 52,456 = 13.19%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Lockheed Martin Corp. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.