Lockheed Martin (WBO:LMT) ROCE % : 23.06% (As of Sep. 2024)

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What is Lockheed Martin ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Lockheed Martin's annualized ROCE % for the quarter that ended in Sep. 2024 was 23.06%.

Lockheed Martin ROCE % Historical Data

The historical data trend for Lockheed Martin's ROCE % 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.

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Lockheed Martin ROCE % Chart

Lockheed Martin Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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24.93

24.01

22.86

20.41

24.49

Lockheed Martin Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															22.42	25.30	23.01	24.05	23.06

Lockheed Martin ROCE % Calculation

Lockheed Martin's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	8265.838	/	( ( (49918.72 - 14997.328)	+	(48102.152 - 15531.229) )	/ 2 )
	=	8265.838	/	( (34921.392	+	32570.923)	/ 2 )
	=	8265.838	/	33746.1575
	=	24.49 %

Lockheed Martin's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	7835.096	/	( ( (51165.604 - 17179.997)	+	(50023.52 - 16046.81) )	/ 2 )
	=	7835.096	/	( ( 33985.607	+	33976.71 )	/ 2 )
	=	7835.096	/	33981.1585
	=	23.06 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Lockheed Martin (WBO:LMT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Lockheed Martin Business Description

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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, 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.