General Dynamics Corporation (GD)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 42,272,000 | 39,407,000 | 38,469,000 | 37,925,000 | 39,350,000 |
| Property, plant and equipment | US$ in thousands | 6,198,000 | 5,900,000 | 5,417,000 | 5,100,000 | 4,475,000 |
| Fixed asset turnover | 6.82 | 6.68 | 7.10 | 7.44 | 8.79 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $42,272,000K ÷ $6,198,000K
= 6.82
General Dynamics Corp.'s fixed asset turnover has fluctuated over the past five years. The decreasing trend from 8.79 in 2019 to 6.82 in 2023 indicates that the company has been generating less revenue relative to its investment in fixed assets. This decline could suggest inefficiencies in asset utilization or a slowdown in sales growth compared to the increase in fixed assets.
Although the ratios are above 1, indicating that the company is generating more revenue from its fixed assets than the value of those assets, the decreasing trend is concerning. It is important for General Dynamics to closely monitor its fixed asset turnover to ensure optimal utilization of its assets and maximize profitability. Further analysis of the company's operational efficiency and strategic positioning may provide insights into the factors influencing these trends in fixed asset turnover.
Peer comparison
Dec 31, 2023