General Dynamics Corporation (GD)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	4.25	3.83	3.84	3.70	3.84	3.58	3.57	—	3.34	—	—	—	3.33	—	—	—	—	—	—	—
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
Working capital turnover	7.27	7.45	7.43	5.82	5.89	6.08	6.66	6.54	6.89	7.28	6.59	5.70	6.40	5.46	5.84	7.34	6.80	8.05	8.51	6.16

General Dynamics Corporation's activity ratios reflect its efficiency in managing inventory, receivables, payables, and working capital.

1. Inventory turnover ratio indicates the number of times inventory is sold and replaced during a period. The ratio has been declining steadily from 4.06 in March 2020 to 0.36 in December 2024, suggesting a significant decrease in inventory turnover efficiency.

2. Receivables turnover ratio measures how quickly the company collects outstanding receivables. The ratio was not available for the initial periods but gradually increased from 3.33 in December 2021 to 4.25 in December 2024, indicating improvement in receivables collection efficiency.

3. Payables turnover ratio evaluates how quickly the company pays its creditors. The ratio fluctuated over the years but remained relatively stable, signaling consistency in managing payables.

4. Working capital turnover ratio shows how efficiently the company generates sales from its working capital. The ratio fluctuated between 5.46 and 8.51 during the observed period, suggesting variations in utilizing working capital to generate revenue.

Overall, General Dynamics Corporation should focus on optimizing its inventory management to improve efficiency in inventory turnover. Additionally, maintaining stable payables turnover and further enhancing receivables turnover efficiency can contribute to overall operational effectiveness and cash flow management.

Average number of days

		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
Days of inventory on hand (DOH)	days	1,027.58	1,091.56	1,052.51	1,053.26	951.66	923.03	859.05	784.90	700.31	700.77	692.02	633.41	621.72	665.36	690.61	671.01	677.96	197.54	122.34	89.94
Days of sales outstanding (DSO)	days	85.86	95.22	95.15	98.52	94.99	101.97	102.32	—	109.32	—	—	—	109.48	—	—	—	—	—	—	—
Number of days of payables	days	353.38	354.13	322.62	351.82	343.37	369.46	378.26	363.88	376.41	347.86	352.64	364.20	368.73	315.78	308.83	322.77	348.36	80.63	43.73	36.60

General Dynamics Corporation's activity ratios indicate the efficiency of its operating cycle and management of working capital.

1. Days of Inventory on Hand (DOH):
- General Dynamics' DOH has fluctuated over the years, ranging from 89.94 days to 1,091.56 days.
- A higher DOH suggests a longer time for inventory turnover, which could indicate potential issues with inventory management efficiency.
- The sharp increase in DOH over the years may indicate challenges in controlling inventory levels and potential excess or obsolete inventory.

2. Days of Sales Outstanding (DSO):
- DSO shows the average number of days it takes for General Dynamics to collect revenue from its sales.
- The DSO values were not available for the earlier periods but ranged from 85.86 days to 109.48 days in the later periods.
- A lower DSO indicates faster collection of receivables, which is favorable for cash flow management and liquidity.

3. Number of Days of Payables:
- General Dynamics' number of days of payables ranged from 36.60 days to 378.26 days over the years.
- A higher number of days of payables may indicate a longer period in which the company takes to pay its creditors, potentially benefiting from extended credit terms.
- However, an excessively high number of days of payables could signal liquidity issues or strained relationships with suppliers.

Overall, General Dynamics Corporation should focus on optimizing its inventory management to reduce the excessive days of inventory on hand and consider balancing its payables to maintain healthy working capital levels and relationships with suppliers.

Long-term

	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
Fixed asset turnover	7.38	7.28	7.16	6.97	6.82	6.90	6.87	6.80	6.68	6.99	7.02	7.06	7.10	7.45	7.50	7.57	7.44	7.86	8.16	8.56
Total asset turnover	0.85	0.80	0.81	0.78	0.77	0.77	0.78	0.77	0.76	0.76	0.76	0.76	0.77	0.75	0.75	0.77	0.74	0.76	0.77	0.72

General Dynamics Corporation's fixed asset turnover ratio has been gradually decreasing from 8.56 in March 2020 to 6.68 in December 2022, indicating a decline in the company's efficiency in generating revenue from its fixed assets over the period. However, there was a slight uptick in the ratio to 7.38 by December 2024.

In contrast, the total asset turnover ratio fluctuated between 0.72 and 0.85 during the same period. The ratio experienced some volatility but generally trended upwards from 0.72 in March 2020 to 0.85 by December 2024, signaling an improvement in General Dynamics Corporation's overall efficiency in generating sales from its total assets.

The decreasing trend in fixed asset turnover suggests that General Dynamics may need to reassess its asset utilization strategies to improve efficiency in generating revenue from fixed assets. Conversely, the increasing trend in total asset turnover demonstrates the company's ability to generate more sales from its overall asset base over time.