Abstract

After the 9/11 attack, the US invasion of Afghanistan and later the invasion of Iraq, not only changed the dynamics of global politics but also impacted the US defence industry by reaching a new height. This paper analyzes factors that are impacting the financial performance of Lockheed Martin which is measured via Earnings per share (EPS). After analyzing the data of Lockheed Martin for 20 years using Multivariate regression analysis, results indicate that The Defence budget of Iraq and Goodwill hurts EPS. On the other hand, retained earnings and Total debt positively impact the EPS. The company must focus more on its research & development to keep itself ahead of its competitor. The study suggests that Lockheed Martin should focus on obtaining contracts from various countries, especially those who are the major importers of defence equipment, which will help them in enhancing their performance positively.

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