LMT Quick Ratio Analysis

LMT’s quick ratio of 0.30x means the company has only $0.30 in highly liquid assets (cash, marketable securities, receivables) for every $1 of current liabilities due within a year, indicating a thin short-term liquidity cushion.

That ratio sits well below the sector median of 0.72x, placing LMT in the 15th percentile among its peers — meaning 85% of rivals have a stronger liquidity position. While the metric has been decreasing over the last eight quarters, the quarter-over-quarter change of +57.9% (from 0.19x to 0.30x) shows a recent improvement, though a year-over-year comparison is not available. The combination of a very low quick ratio and a long-term declining trend — even with the short-term spike — points to elevated liquidity risk, as the company may struggle to cover near-term obligations without external financing. This metric directly supports the overall CAUTIOUS verdict, because weak liquidity and a downward trajectory are classic warning signs for investors.

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