LMT Current Ratio Analysis

The current ratio of 1.19x means that for every $1 of short-term liabilities, LMT has $1.19 in current assets, indicating a normal ability to cover near-term obligations.

This level sits exactly at the sector median of 1.19x and places LMT in the 48th percentile among peers, meaning it is slightly below the average peer. The year-over-year change is not available, but the quarter-over-quarter change shows a +4.4% improvement from the prior quarter's 1.14x. While the current ratio is already at the sector median, the upward quarterly trend suggests liquidity is strengthening, which may reduce short-term default risk. However, a 1.19x ratio provides only modest cushion, leaving limited room for error if cash flows tighten. This metric partly contradicts the overall CAUTIOUS verdict because the stable peer-level ratio and recent improvement indicate lower immediate liquidity stress, though the overall cautious stance likely reflects other factors.

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