Lockheed Martin (Lockheed Martin) Interest Coverage

: 9.03 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Lockheed Martin's Operating Income for the three months ended in Dec. 2023 was $2,293 Mil. Lockheed Martin's Interest Expense for the three months ended in Dec. 2023 was $-254 Mil. Lockheed Martin's interest coverage for the quarter that ended in Dec. 2023 was 9.03. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Lockheed Martin's Interest Coverage or its related term are showing as below:

LMT' s Interest Coverage Range Over the Past 10 Years
Min: 8.15 Med: 12.04 Max: 16.03
Current: 9.3

LMT's Interest Coverage is ranked better than
57.41% of 216 companies
in the Aerospace & Defense industry
Industry Median: 7.04 vs LMT: 9.30

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Lockheed Martin Interest Coverage Historical Data

The historical data trend for Lockheed Martin's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Lockheed Martin Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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13.09

14.63

16.03

13.40

9.29

Lockheed Martin Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															11.35	10.13	9.57	8.62	9.03

Competitive Comparison

For the Aerospace & Defense subindustry, Lockheed Martin's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Lockheed Martin Interest Coverage Distribution

For the Aerospace & Defense industry and Industrials sector, Lockheed Martin's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Lockheed Martin's Interest Coverage falls into.

Lockheed Martin Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Lockheed Martin's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Lockheed Martin's Interest Expense was $-916 Mil. Its Operating Income was $8,507 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,291 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	8507	/	-916
	=	9.29

Lockheed Martin's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Lockheed Martin's Interest Expense was $-254 Mil. Its Operating Income was $2,293 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,291 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2293	/	-254
	=	9.03

The higher the ratio, the stronger the company's Financial Strength is.

Lockheed Martin (NYSE:LMT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Lockheed Martin Interest Coverage Related Terms

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Lockheed Martin (Lockheed Martin) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Lockheed Martin Corp (NYSE:LMT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

LMT:Mexico 1LMT:Italy LOM:Germany LOM:Germany LOM:Germany LMTB34:Brazil LMT:Austria LMT:Argentina

Address

6801 Rockledge Drive, Bethesda, MD, USA, 20817

Website

https://www.lockheedmartin.com

Lockheed Martin is the world's largest defense contractor and has dominated the Western market for high-end fighter aircraft since it won the F-35 Joint Strike Fighter program in 2001. Lockheed's largest segment is aeronautics, which derives upward of two-thirds of its revenue from the F-35. Lockheed's remaining segments are rotary and mission systems, which is mainly the Sikorsky helicopter business; missiles and fire control, which creates missiles and missile defense systems; and space systems, which produces satellites and receives equity income from the United Launch Alliance joint venture.

Executives

John Donovan	director	208 S. AKARD ST. , ROOM 3025, DALLAS TX 75202
Stephanie C. Hill	officer: Executive Vice President	55 WATER STREET, NEW YORK NY 10041
Timothy S Cahill	officer: Executive Vice President	6802 ROCKLEDGE DRIVE, BETHESDA MD 20817
St John Frank A	officer: Executive Vice President	6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Gregory M Ulmer	officer: Acting Executive Vice Pres.	6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Vincent R. Stewart	director	C/O AMERICAN PUBLIC EDUCATION, INC., 111 WEST CONGRESS STREET, CHARLES TOWN WV 25414
Paul Harry Edward Iii	officer: Vice President & Controller	6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Evan T Scott	officer: Vice President & Treasurer	6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
John W Mollard	officer: Vice President & Treasurer	6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Brian P Colan	officer: VP & Controller	6801 ROCKLEDGE DR, BETHESDA MD 20817
Maryanne Lavan	officer: SVP & General Counsel	6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Jesus Jr Malave	officer: Chief Financial Officer	L3HARRIS TECHNOLOGIES INC, 1025 WEST NASA BOULEVARD, MELBOURNE FL 32919
Lightfoot Robert M Jr	officer: Executive Vice President	6801 ROCKLEDGE DR, BETHESDA MD 20817
Patricia E Yarrington	director	6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Kenneth R Possenriede	officer: Vice President & Treasurer	6801 ROCKLEDGE DRIVE, BETHESDA MD 20817