General Dynamics Corporation (GD)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 42,272,000 | 39,407,000 | 38,469,000 | 37,925,000 | 39,350,000 |
| Receivables | US$ in thousands | 11,001,000 | 11,803,000 | 11,539,000 | 11,185,000 | 11,401,000 |
| Receivables turnover | 3.84 | 3.34 | 3.33 | 3.39 | 3.45 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $42,272,000K ÷ $11,001,000K
= 3.84
The receivables turnover ratio for General Dynamics Corp. has shown a slight upward trend over the past five years. In 2023, the receivables turnover ratio improved to 3.84 compared to 3.34 in 2022. This indicates that the company collected its accounts receivable approximately 3.84 times during the year, up from 3.34 times the previous year.
Although the ratio fluctuated slightly in the past five years, it generally remained in the range of 3.33 to 3.45, suggesting that the company has been effectively managing its accounts receivable collection process. The increase in the receivables turnover ratio in 2023 may be a positive sign of the company's efficiency in converting credit sales into cash.
A higher receivables turnover ratio is generally preferable as it indicates that the company is collecting its receivables more quickly. This could be a reflection of effective credit policies, prompt collection efforts, or a customer base that pays its bills promptly.
Overall, the trend in General Dynamics Corp.'s receivables turnover ratio indicates a reasonably healthy liquidity position and efficient management of accounts receivable over the past five years.
Peer comparison
Dec 31, 2023