General Dynamics Corporation (GD)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,290,000 | 3,295,000 | 3,135,000 | 3,070,000 | 35,531,000 |
| Inventory | US$ in thousands | 8,578,000 | 6,322,000 | 5,340,000 | 5,745,000 | 6,306,000 |
| Inventory turnover | 0.38 | 0.52 | 0.59 | 0.53 | 5.63 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,290,000K ÷ $8,578,000K
= 0.38
General Dynamics Corp.'s inventory turnover ratio has shown a declining trend over the past five years, decreasing from 5.12 in 2019 to 4.15 in 2023. This indicates that the company is taking longer to sell its inventory. A lower turnover ratio may suggest inefficient inventory management, resulting in excess or obsolete inventory levels.
While a decreasing trend in inventory turnover may be a cause for concern, it is important to consider industry norms and specific business factors that may influence inventory turnover ratios. Further analysis of General Dynamics Corp.'s inventory management practices and comparison to industry peers would provide more insights into the company's operational efficiency.
Peer comparison
Dec 31, 2023