General Dynamics Corporation (GD)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,454,000 | 3,290,000 | 3,295,000 | 3,135,000 | 3,070,000 |
| Inventory | US$ in thousands | 9,724,000 | 8,578,000 | 6,322,000 | 5,340,000 | 5,745,000 |
| Inventory turnover | 0.36 | 0.38 | 0.52 | 0.59 | 0.53 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,454,000K ÷ $9,724,000K
= 0.36
General Dynamics Corporation's inventory turnover has shown some fluctuations over the past five years. The ratio decreased from 0.53 in December 31, 2020, to 0.36 in December 31, 2024. This implies that General Dynamics is taking longer to sell its inventory in recent years, indicating potential inefficiencies in managing inventory levels or changes in demand for its products. A lower inventory turnover ratio may suggest that the company is carrying excess inventory or facing challenges in selling its products efficiently. It would be important for General Dynamics to closely monitor and adjust its inventory management strategies to improve the efficiency of its operations and optimize working capital utilization.
Peer comparison
Dec 31, 2024