Lockheed Martin's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 15.76.
Lockheed Martin's Days Inventory for the
three
months ended in Mar. 2026 was 22.25.
Lockheed Martin's Days Payable for the
three
months ended in Mar. 2026 was 23.86.
Therefore, Lockheed Martin's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 14.15.
Lockheed Martin (LIM:LMT) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Lockheed Martin Cash Conversion Cycle Related Terms
Lockheed Martin Cash Conversion Cycle Historical Data
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The historical data trend for Lockheed Martin's Cash Conversion Cycle 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.
LIM:LMT vs HWM, GD, RKLB: Cash Conversion Cycle Comparison
For the Aerospace & Defense subindustry, Lockheed Martin's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle 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 Cash Conversion Cycle vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Lockheed Martin's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Lockheed Martin's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Lockheed Martin's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Lockheed Martin (LIM:LMT) has a Cash Conversion Cycle of 14.15 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Lockheed Martin and its competitors.
Is Lockheed Martin's Cash Conversion Cycle too high?
Lockheed Martin's current Cash Conversion Cycle is 14.15. The Aerospace & Defense industry median Cash Conversion Cycle is 137.38. Lockheed Martin's value of 14.15 is 89.7% below this industry median. Overall, Lockheed Martin has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lockheed Martin's Cash Conversion Cycle compare to HWM and GD?
Lockheed Martin's Cash Conversion Cycle of 14.15 can be compared against companies in the Aerospace & Defense industry. The industry median Cash Conversion Cycle is 137.38. Lockheed Martin's value of 14.15 is 89.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for an Aerospace & Defense company?
The median Cash Conversion Cycle among Aerospace & Defense companies is 137.38, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lockheed Martin's current Cash Conversion Cycle of 14.15 is 89.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Lockheed Martin and its competitors. For the Aerospace & Defense industry, the median Cash Conversion Cycle is 137.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lockheed Martin's current Cash Conversion Cycle is 14.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lockheed Martin stock overvalued right now?
Based on GuruFocus' analysis, Lockheed Martin (LIM:LMT) is currently considered Fairly Valued. The stock's GF Value™ is $587.42, compared to a current price of $541.22 — trading 7.9% below its estimated fair value. The current Cash Conversion Cycle is 14.15 and 89.7% below the Aerospace & Defense industry median of 137.38. Lockheed Martin's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Lockheed Martin (LIM:LMT), the current Cash Conversion Cycle is 14.15 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lockheed Martin (LIM:LMT) Overvalued in 2026?
Based on GuruFocus' analysis, Lockheed Martin stock appears to be undervalued.
The current stock price of $541.22 is trading 7.9% below its estimated GF Value™ of $587.42.
GuruFocus considers Lockheed Martin to be Fairly Valued.
Key valuation signals for LIM:LMT:
Cash Conversion Cycle: 14.15
GF Value™: $587.42 vs. price of $541.22 (7.9% below fair value)
Industry Position: 89.7% below the Aerospace & Defense median
No single metric tells the full story. See the LIM:LMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. Aeronautics is Lockheed's largest segment, which derives upward of two-thirds of its revenue from the F-35. Lockheed's remaining segments are rotary and mission systems, mainly encompassing 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.
73GF Score
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