General Dynamics Corporation (GD)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 47,716,000 | 42,272,000 | 39,407,000 | 38,469,000 | 37,925,000 |
| Property, plant and equipment | US$ in thousands | 6,467,000 | 6,198,000 | 5,900,000 | 5,417,000 | 5,100,000 |
| Fixed asset turnover | 7.38 | 6.82 | 6.68 | 7.10 | 7.44 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $47,716,000K ÷ $6,467,000K
= 7.38
General Dynamics Corporation's fixed asset turnover ratio has exhibited a decreasing trend over the period from December 31, 2020, to December 31, 2024. The ratio stood at 7.44 in 2020 before declining to 6.68 in 2022. However, it slightly increased to 7.38 by the end of 2024.
A fixed asset turnover ratio measures how effectively a company is generating revenue from its investment in fixed assets. A higher ratio indicates that the company is utilizing its fixed assets efficiently to generate sales.
Despite the fluctuations in the fixed asset turnover ratio, General Dynamics Corporation generally maintains a relatively high level of efficiency in utilizing its fixed assets to generate revenue. It is important for the company to continue monitoring and optimizing its fixed asset utilization to sustain or improve this efficiency in the future.
Peer comparison
Dec 31, 2024