Business Analysis of Lockheed Martin

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Lockheed Martin

LOCKHEED MARTIN

Business Overview

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The Missiles and Fire Control segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; manned and unmanned ground vehicles; and energy management solutions. The Rotary and Mission Systems segment offers military and commercial helicopters; ship and submarine mission and combat systems; mission systems and sensors for rotary and fixed-wing aircraft; sea and land-based missile defense systems; radar systems; the Littoral combat ship; simulation and training services; and unmanned systems and technologies. It also supports government customers in cybersecurity; and delivers communications, and command and control capabilities through mission solutions for defense applications. In addition, this segment provides aftermarket service and support solutions to commercial and military customers. The Space Systems segment offers satellites, strategic and defensive missile systems, and space transportation systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness and integrates space and ground-based systems to help its customers gather, analyze, and securely distribute critical intelligence data. Lockheed Martin Corporation was founded in 1909 and is headquartered in Bethesda, Maryland.

Lockheed Martin

Lockheed Martin


R&P Rank: 58
Sector: Aerospace and Defense
Industry:Military and Defense
H.Q Location:Maryland
Website: www.lockheedmartin.com
Company Address:
6801 ROCKLEDGE DR, BETHESDA MD 20817
Ph:301-897-6000

Business Analysis of Lockheed Martin

The Aerospace and Defense Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Lockheed Martin compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Lockheed Martin to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Lockheed Martin with an interactive chart.

  1. Revenue Growth: Lockheed Martin reported a revenue growth of 16.6% year-on-year during 2016. Military and Defense Industry grew at 13.3% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Lockheed Martin spent 89.3% of its total revenues on COGS. Military and Defense industry average (COGS share of revenue) in the same period was 85.4%
  3. R&D share of Revenues: Lockheed Martin R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: Lockheed Martin SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, Lockheed Martin spent 9.9% of its total revenues on Inventories. Military and Defense industry average Inventory spending in the same period was 8.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Lockheed Martin invested 17.8% of its total revenues on Accounts Payable (A/P) Military and Defense industry average Accounts Payable investment in the same period was 15.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Lockheed Martin invested 17.4% of its total revenues on Accounts Receivable (A/R). Military and Defense industry average Accounts Receivable investment in the same period was 18.2%
  8. PP&E share of Revenues: As a percentage of revenue, Lockheed Martin invested 11.7% of its total revenues on Property, Plants, and Equipments (PP&E). Military and Defense industry average PPE investment in the same period was 17.0%
  9. Intangibles share of Revenues: As a percentage of revenue, Lockheed Martin invested 31.4% of its total revenues on Intangibles. Military and Defense industry average Intangibles investment in the same period was 32.5%
  10. Net Margins: Lockheed Martin Net Margins in the year 2016 were 11.2%. Military and Defense industry average Net Margins in the same period were 10.3%

Sector and Industry Association of Lockheed Martin

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Lockheed Martin is associated with Industrials Sector Group, Aerospace and Defense Sector, and Military and Defense Industry.

Aerospace and Defense sector is comprised of the following industries: Aerospace Products, Parts, Systems and Services; Military and Defense. The definitions for each of the industries is as follows:

  • Aerospace Products, Parts, Systems and Services industry includes manufacturers, assemblers, distributors and service providers of aerospace and aircraft parts primarily used in the commercial or private air transport.
  • Military and Defense industry includes producers of components and equipment for the defense industry, including military aircraft, radar equipment and weapons, drones, space and security systems. Military and Defense companies also offer military shipbuilding, submarines, amphibious assault ships and nuclear services. Arms and weapon companies offering consumer firearms are included in the specialized consumer goods.

Industry Ranking of Lockheed Martin

With $47.2 billion revenues, Lockheed Martin ranked number 1 of all the companies in the US Military and Defense industry. There were a total of 7 public companies in the US Military and Defense industry that had revenues greater than $50 million during 2016.

The top companies in the US Military and Defense industry by revenues during 2016 were:

  1. Lockheed Martin ($47.2 billion)
  2. Huntington Ingalls Industries ($7.1 billion)
  3. FLIR Systems ($1.7 billion)
  4. BWX Technologies ($1.6 billion)
  5. Cubic ($1.5 billion)
  6. DigitalGlobe ($725.4 million)
  7. Kratos Defense & Security Solutions ($668.7 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Lockheed Martinand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of lockheed-martin

Huntington Ingalls Industries (HII) Business Analysis – Analyze Historical Performance, Strategic...

Huntington Ingalls Industries, Inc. with $7 billion revenues in the year 2016 was the number 2 Military and Defense company. Read this report to know the top competitors of Huntington Ingalls Industries and identify growth and cost optimization opportunities of Huntington Ingalls Industries

FLIR Systems (FLIR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

FLIR Systems Inc with $2 billion revenues in the year 2016 was the number 3 Military and Defense company. Read this report to know the top competitors of FLIR Systems and identify growth and cost optimization opportunities of FLIR Systems

BWX Technologies (BWXT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

BWX Technologies, Inc. with $2 billion revenues in the year 2016 was the number 4 Military and Defense company. Read this report to know the top competitors of BWX Technologies and identify growth and cost optimization opportunities of BWX Technologies

Cubic (CUB) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Cubic Corp with $1 billion revenues in the year 2016 was the number 5 Military and Defense company. Read this report to know the top competitors of Cubic and identify growth and cost optimization opportunities of Cubic

DigitalGlobe (DGI) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

DigitalGlobe Inc. with $725 million revenues in the year 2016 was the number 6 Military and Defense company. Read this report to know the top competitors of DigitalGlobe and identify growth and cost optimization opportunities of DigitalGlobe

Kratos Defense & Security Solutions (KTOS) Business Analysis – Analyze Historical...

Kratos Defense & Security Solutions, Inc. with $669 million revenues in the year 2016 was the number 7 Military and Defense company. Read this report to know the top competitors of Kratos Defense & Security Solutions and identify growth and cost optimization opportunities of Kratos Defense & Security Solutions

Revenues Analysis

Lockheed Martin (LMT) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Lockheed Martin Corp (LMT) from 2012 to 2016. Lockheed Martin generated a total of $47.2 billion revenues during 2016. Lockheed Martin reported a revenue growth of 16.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Lockheed Martin (LMT) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Lockheed Martin Corp (LMT) from 2002 to 2016. Lockheed Martin generated a total of $47.2 billion revenues during 2016. Lockheed Martin reported a revenue growth of 16.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Lockheed Martin (LMT) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Lockheed Martin Corp (LMT) revenue growth with Military and Defense industry growth during the last five years from 2012 to 2016. Lockheed Martin reported a revenue growth of 16.6% year-over-year during 2016. The Military and Defense industry growth was 13.3% year-over-year during 2016. Lockheed Martin growth was faster than the industry during 2016.

Profit Analysis