Lockheed Martin Return On Asset vs. EBITDA

LOM Stock   463.10  0.45  0.1%   
Considering Lockheed Martin's profitability and operating efficiency indicators, Lockheed Martin may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Lockheed Martin's ability to earn profits and add value for shareholders.
For Lockheed Martin profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lockheed Martin to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lockheed Martin utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lockheed Martin's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lockheed Martin over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more information on how to buy Lockheed Stock please use our How to Invest in Lockheed Martin guide.
Please note, there is a significant difference between Lockheed Martin's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lockheed Martin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lockheed Martin's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Lockheed Martin EBITDA vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lockheed Martin's current stock value. Our valuation model uses many indicators to compare Lockheed Martin value to that of its competitors to determine the firm's financial worth.
Lockheed Martin is currently regarded as number one stock in return on asset category among its peers. It also is currently regarded as number one stock in ebitda category among its peers totaling about  96,744,444,444  of EBITDA per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lockheed Martin's earnings, one of the primary drivers of an investment's value.

Lockheed EBITDA vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Lockheed Martin

Return On Asset

 = 

Net Income

Total Assets

 = 
0.09
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Lockheed Martin

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
8.71 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Lockheed EBITDA Comparison

Lockheed Martin is currently under evaluation in ebitda category among its peers.

Lockheed Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Lockheed Martin. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lockheed Martin position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lockheed Martin's important profitability drivers and their relationship over time.

Use Lockheed Martin in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lockheed Martin position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lockheed Martin will appreciate offsetting losses from the drop in the long position's value.

Lockheed Martin Pair Trading

Lockheed Martin Pair Trading Analysis

The ability to find closely correlated positions to Lockheed Martin could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lockheed Martin when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lockheed Martin - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lockheed Martin to buy it.
The correlation of Lockheed Martin is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lockheed Martin moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lockheed Martin moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lockheed Martin can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Lockheed Martin position

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Additional Tools for Lockheed Stock Analysis

When running Lockheed Martin's price analysis, check to measure Lockheed Martin's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lockheed Martin is operating at the current time. Most of Lockheed Martin's value examination focuses on studying past and present price action to predict the probability of Lockheed Martin's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lockheed Martin's price. Additionally, you may evaluate how the addition of Lockheed Martin to your portfolios can decrease your overall portfolio volatility.