General Dynamics Corporation (GD)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	3.85	3.59	3.58	—	3.34	—	—	—	3.33	—	—	—	—	—	—	—	—	—	—	—
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
Working capital turnover	5.90	6.10	6.67	6.55	6.89	7.28	6.59	5.70	6.40	5.46	5.84	7.34	6.80	8.05	8.51	6.16	11.28	20.20	24.75	10.88

General Dynamics Corp.'s activity ratios provide insights into the efficiency of the company's operations in managing inventory, receivables, payables, and working capital turnover.

1. Inventory Turnover: The company's inventory turnover ratio has been decreasing over the past eight quarters, suggesting that it takes longer for General Dynamics to sell its inventory. However, the ratios still indicate that the company is able to turn over its inventory approximately four to five times a year, which is typical for the industry.

2. Receivables Turnover: General Dynamics' receivables turnover has fluctuated over the quarters but has generally remained between 3.34 and 3.84. A higher ratio indicates that the company is efficient in collecting payments from its customers. The ratios suggest that the company collects its receivables approximately three to four times a year.

3. Payables Turnover: The payables turnover ratios have been relatively stable over the quarters, ranging from 9.65 to 11.50. A higher payables turnover indicates that the company pays its suppliers more frequently. The ratios suggest that General Dynamics pays its suppliers approximately ten to eleven times a year.

4. Working Capital Turnover: The working capital turnover ratios show how efficiently General Dynamics is utilizing its working capital to generate revenue. The ratios have been fluctuating over the quarters but generally indicate that the company is able to generate revenue around five to seven times the value of its working capital.

Overall, the activity ratios indicate that General Dynamics Corp. is efficiently managing its inventory, receivables, payables, and working capital to support its operations and generate revenue. An in-depth analysis of these ratios can help stakeholders assess the company's operational efficiency and financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	284.43	274.99	254.38	232.98	700.31	700.77	692.02	633.41	621.72	665.36	690.61	671.01	677.96	197.54	122.34	89.94	64.82	68.78	68.97	67.91
Days of sales outstanding (DSO)	days	94.78	101.75	102.10	—	109.32	—	—	—	109.48	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	102.62	110.07	112.01	108.01	376.41	347.86	352.64	364.20	368.73	315.78	308.83	322.77	348.36	80.63	43.73	36.60	32.50	31.38	30.44	33.03

General Dynamics Corp.'s activity ratios show the efficiency of the company in managing its inventory, collecting receivables, and paying off payables.

1. Days of Inventory on Hand (DOH):
- General Dynamics has shown an increasing trend in DOH from Q1 2022 to Q4 2023, indicating that the company is holding onto inventory for a longer period.
- The company held inventory for an average of around 80-90 days during 2022 and 2023, suggesting that it takes considerable time to sell its inventory.

2. Days of Sales Outstanding (DSO):
- DSO has fluctuated over the quarters but generally stayed between 100-110 days, indicating that General Dynamics takes around 3-4 months to collect payments from its customers.
- The company's DSO decreased from Q4 2022 to Q1 2023 but increased slightly in subsequent quarters.

3. Number of Days of Payables:
- General Dynamics also takes around 1-1.5 months to pay off its creditors, as reflected in the days of payables numbers of around 30-40 days.
- The company has maintained relatively stable payment periods to suppliers throughout the quarters considered in the analysis.

Overall, in terms of activity ratios:
- The increasing trend in DOH may suggest potential issues with inventory management and liquidity.
- DSO numbers indicate some variability but generally point to a moderately efficient collection process.
- The consistent payment period in days of payables shows a stable approach to managing vendor payments.

Further analysis and comparison to industry benchmarks would be beneficial to fully evaluate General Dynamics Corp.'s activity efficiency and identify areas for improvement.

Long-term

	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
Fixed asset turnover	6.83	6.91	6.89	6.82	6.68	6.99	7.02	7.06	7.10	7.45	7.50	7.57	7.44	7.86	8.16	8.56	8.79	9.21	9.33	9.36
Total asset turnover	0.77	0.78	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	0.80	0.80	0.79	0.80

General Dynamics Corp.'s long-term activity ratios, as reflected in its fixed asset turnover and total asset turnover, indicate the efficiency with which the company utilizes its assets to generate sales revenue.

1. Fixed Asset Turnover: This ratio measures how efficiently the company's fixed assets are being used to generate sales. General Dynamics Corp.'s fixed asset turnover has shown a relatively stable trend over the past eight quarters, ranging from 6.68 to 7.06. This consistency suggests that the company has been effectively utilizing its fixed assets to generate sales revenue, with the ratio consistently staying above 6.5. A high fixed asset turnover ratio indicates that General Dynamics is effectively using its long-term assets to generate sales, which can result in higher profitability.

2. Total Asset Turnover: This ratio shows how efficiently the company uses all of its assets to generate sales. General Dynamics Corp.'s total asset turnover ratio has remained fairly consistent at around 0.76 to 0.78 over the past eight quarters. A stable total asset turnover ratio indicates that the company is effectively managing its total assets to generate sales revenue. However, compared to the industry average, a total asset turnover ratio of less than 1 may suggest that General Dynamics Corp. could potentially improve its efficiency in utilizing assets to generate sales.

Overall, General Dynamics Corp.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, demonstrate the company's ability to efficiently generate sales revenue using its long-term assets. The consistent performance in these ratios indicates effective utilization of assets, which can contribute to the company's overall financial health and profitability.