General Dynamics Corporation (GD)
Payables 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 |
| Payables | US$ in thousands | 3,095,000 | 3,315,000 | 3,365,000 | 3,248,000 | 3,398,000 | 3,106,000 | 3,138,000 | 3,190,000 | 3,167,000 | 2,682,000 | 2,595,000 | 2,736,000 | 2,952,000 | 2,613,000 | 2,383,000 | 2,788,000 | 3,162,000 | 2,999,000 | 2,860,000 | 3,008,000 |
| Payables turnover | 3.56 | 3.32 | 3.26 | 3.38 | 0.97 | 1.05 | 1.04 | 1.00 | 0.99 | 1.16 | 1.18 | 1.13 | 1.05 | 4.53 | 8.35 | 9.97 | 11.23 | 11.63 | 11.99 | 11.05 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $11,008,000K ÷ $3,095,000K
= 3.56
The payables turnover ratio for General Dynamics Corp. has shown a fluctuating trend over the past eight quarters. The ratio indicates how efficiently the company is managing its trade payables by measuring how many times during a period the company pays off its suppliers.
In Q4 2023, the payables turnover ratio increased to 11.50 compared to the previous quarter's 10.52, indicating that the company paid off its suppliers more frequently during this period. This could potentially signify improved cash management or more favorable payment terms negotiated with suppliers.
Despite the quarterly fluctuations, the payables turnover ratios have generally been above 10 over the past two years, indicating that General Dynamics Corp. has been effectively managing its payable obligations. It's worth noting that a higher payables turnover ratio generally suggests that the company is efficiently utilizing its trade credit and managing its cash flows effectively.
Overall, the upward trend in the payables turnover ratio for General Dynamics Corp. in Q4 2023 suggests that the company has been successful in its supplier payment strategies, which can positively impact its working capital management and overall financial health.
Peer comparison
Dec 31, 2023
See also:
General Dynamics Corporation Payables Turnover (Quarterly Data)