General Dynamics Corporation (GD)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,454,000 | 3,391,000 | 3,359,000 | 3,323,000 | 3,290,000 | 3,275,000 | 3,247,000 | 3,258,000 | 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 |
| Inventory | US$ in thousands | 9,724,000 | 10,141,000 | 9,686,000 | 9,589,000 | 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 |
| Inventory turnover | 0.36 | 0.33 | 0.35 | 0.35 | 0.38 | 0.40 | 0.42 | 0.47 | 0.52 | 0.52 | 0.53 | 0.58 | 0.59 | 0.55 | 0.53 | 0.54 | 0.54 | 1.85 | 2.98 | 4.06 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,454,000K ÷ $9,724,000K
= 0.36
General Dynamics Corporation's inventory turnover has been on a declining trend over the past few years, indicating a decrease in the company's efficiency in managing its inventory. The inventory turnover ratio measures how many times a company's inventory is sold and replaced during a specific period.
The inventory turnover ratio decreased from 4.06 in March 2020 to 0.36 in December 2024. This decline suggests that General Dynamics has been holding onto its inventory for longer periods, which could lead to higher storage costs, obsolescence risks, and potential liquidity issues.
A low inventory turnover ratio may indicate overstocking, slow sales, or inefficiencies in production and distribution processes. General Dynamics may need to review its inventory management strategies to improve efficiency, reduce carrying costs, and maintain adequate levels of inventory to meet customer demand.
Peer comparison
Dec 31, 2024
Dec 31, 2024
See also:
General Dynamics Corporation Inventory Turnover (Quarterly Data)