General Dynamics Corporation (GD)
Payables 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 |
| Payables | US$ in thousands | 3,344,000 | 3,290,000 | 2,969,000 | 3,203,000 | 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 |
| Payables turnover | 1.03 | 1.03 | 1.13 | 1.04 | 1.06 | 0.99 | 0.96 | 1.00 | 0.97 | 1.05 | 1.04 | 1.00 | 0.99 | 1.16 | 1.18 | 1.13 | 1.05 | 4.53 | 8.35 | 9.97 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,454,000K ÷ $3,344,000K
= 1.03
General Dynamics Corporation's payables turnover ratio has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The payables turnover ratio measures how efficiently a company is managing its payables by assessing how many times a company pays off its average accounts payable balance over a specific period.
The payables turnover ratio decreased from 9.97 as of March 31, 2020, to 1.05 as of December 31, 2020, which indicates a significant decrease in the speed at which payables were being paid off. This sharp decline suggests that General Dynamics was taking a longer time to settle its payables during this period.
From March 31, 2021, to September 30, 2022, the payables turnover ratio remained relatively stable, hovering around 1.00. This stability may suggest that General Dynamics had established a consistent payment pattern for its accounts payable during this time frame.
There was a slight increase in the payables turnover ratio from December 31, 2022, to June 30, 2024, reaching 1.13. This uptick may indicate a modest improvement in the company's payables management efficiency, as it was able to pay off its payables slightly quicker during this period.
Overall, the varying levels of the payables turnover ratio over the analyzed period reflect fluctuations in General Dynamics Corporation's payables management practices. It is important for the company to monitor and optimize this ratio to ensure effective management of its accounts payable and maintain healthy vendor relationships.
Peer comparison
Dec 31, 2024
See also:
General Dynamics Corporation Payables Turnover (Quarterly Data)