General Dynamics Corporation (GD)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 11,008,000 | 10,993,000 | 10,965,000 | 10,976,000 | 3,295,000 | 3,259,000 | 3,248,000 | 3,197,000 | 3,135,000 | 3,100,000 | 3,067,000 | 3,094,000 | 3,093,000 | 11,829,000 | 19,888,000 | 27,806,000 | 35,510,000 | 34,882,000 | 34,292,000 | 33,244,000 |
| Inventory | US$ in thousands | 8,578,000 | 8,282,000 | 7,642,000 | 7,006,000 | 6,322,000 | 6,257,000 | 6,158,000 | 5,548,000 | 5,340,000 | 5,651,000 | 5,803,000 | 5,688,000 | 5,745,000 | 6,402,000 | 6,666,000 | 6,852,000 | 6,306,000 | 6,573,000 | 6,480,000 | 6,185,000 |
| Inventory turnover | 1.28 | 1.33 | 1.43 | 1.57 | 0.52 | 0.52 | 0.53 | 0.58 | 0.59 | 0.55 | 0.53 | 0.54 | 0.54 | 1.85 | 2.98 | 4.06 | 5.63 | 5.31 | 5.29 | 5.37 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,008,000K ÷ $8,578,000K
= 1.28
General Dynamics Corp.'s inventory turnover has shown a decreasing trend over the past eight quarters, dropping from 5.77 in Q1 2022 to 4.15 in Q4 2023. This indicates that the company's ability to convert its inventory into sales has slowed down over time.
The average inventory turnover for the past eight quarters is approximately 4.80, suggesting that, on average, General Dynamics Corp. sells its entire inventory approximately 4.80 times per year.
A lower inventory turnover may imply excess inventory levels or difficulty in selling products efficiently. It could also indicate potential issues with demand forecasting, production efficiency, or inventory management.
Overall, General Dynamics Corp. may benefit from reviewing its inventory management practices and strategies to improve its inventory turnover rate and optimize its working capital efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023
See also:
General Dynamics Corporation Inventory Turnover (Quarterly Data)