Lockheed Martin Corporation — Earnings Quality Grade F
LMT · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 19 days, change +7 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 5.6%, CFFO 22.7%. Cash follows revenue
Expense Quality
Inventory 1.4% vs COGS 5.2%. Normal
CapEx growth -2.1% vs revenue 5.6%. Normal
Insufficient data
Gross margin 10.2%, change +0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.71. Profits backed by cash
FCF $6.9B, FCF/NI = 1.38
Accruals ratio = -5.9%. Low accruals
Cash $4.1B covers only 19% of debt $21.7B
Balance Sheet Health
Goodwill+Intangibles $15.6B = 232% of equity. Over 50%
Debt/EBITDA = 2.5x. Healthy
Other assets 7.2% vs revenue 5.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 4% YoY. Normal
Manipulation Score
Insufficient data
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09