LMTCAUTIOUS

LMT Return on Equity (ROE) Analysis

67.6%

Updated 552h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity; a 67.6% ROE means LMT earns $0.676 for every $1 of equity.

Sector Performance

93th percentile

LMT

67.6%

Sector Median

13.9%

Sector Avg

32.1%

Prior Period

74.6%(Jun 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity; a 67.6% ROE means LMT earns $0.676 for every $1 of equity.

This is far above the sector median of 14.3%, placing LMT in the 93rd percentile among its peers. The year-over-year change and eight-quarter trend are not available, but the quarter-over-quarter change is -9.4%, indicating a decline from the prior quarter's 74.6% to 67.6%. Although the absolute level remains very high, the recent drop in ROE suggests a short-term weakening in profitability relative to equity. For an investor, the high level signals strong historical performance, but the declining trend introduces caution about sustainability. This metric partially supports the overall CAUTIOUS verdict — the elevated ROE justifies attention, but the quarter-over-quarter decline aligns with the cautious stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about LMT?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are LMT's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: WDC (85.9%), LVS (90.5%), IT (94.9%), KLAC (95.0%), ITW (96.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.