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Lockheed Martin Interest Coverage

: 14.13 (As of Mar. 2020)
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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 (EBIT) by its Interest Expense. Lockheed Martin's Operating Income for the three months ended in Mar. 2020 was $2,091 Mil. Lockheed Martin's Interest Expense for the three months ended in Mar. 2020 was $-148 Mil. Lockheed Martin's interest coverage for the quarter that ended in Mar. 2020 was 14.13. The higher the ratio, the stronger the company's financial strength is.

NYSE:LMT' s Interest Coverage Range Over the Past 10 Years
Min: 8.27   Med: 11.06   Max: 13.77
Current: 13.13

8.27
13.77

NYSE:LMT's Interest Coverage is ranked higher than
62% of the 165 Companies
in the Aerospace & Defense industry.

( Industry Median: 8.20 vs. NYSE:LMT: 13.13 )

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

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Lockheed Martin Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.33 8.27 9.79 11.03 12.81

Lockheed Martin Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.80 12.23 12.73 13.52 14.13

Competitive Comparison
* 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.


Lockheed Martin Interest Coverage Distribution

* 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.


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. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, Lockheed Martin's Interest Expense was $-653 Mil. Its Operating Income was $8,367 Mil. And its Long-Term Debt & Capital Lease Obligation was $11,404 Mil.

Interest Coverage=-1*Operating Income (A: Dec. 2019 )/Interest Expense (A: Dec. 2019 )
=-1*8367/-653
=12.81

Lockheed Martin's Interest Coverage for the quarter that ended in Mar. 2020 is calculated as

Here, for the three months ended in Mar. 2020, Lockheed Martin's Interest Expense was $-148 Mil. Its Operating Income was $2,091 Mil. And its Long-Term Debt & Capital Lease Obligation was $11,439 Mil.

Interest Coverage=-1*Operating Income (Q: Mar. 2020 )/Interest Expense (Q: Mar. 2020 )
=-1*2091/-148
=14.13

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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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