General Dynamics Corporation (GD)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 47,716,000 | 42,272,000 | 39,407,000 | 38,469,000 | 37,925,000 |
| Receivables | US$ in thousands | 11,225,000 | 11,001,000 | 11,803,000 | 11,539,000 | 11,185,000 |
| Receivables turnover | 4.25 | 3.84 | 3.34 | 3.33 | 3.39 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $47,716,000K ÷ $11,225,000K
= 4.25
General Dynamics Corporation's receivables turnover has shown a fluctuating trend over the past five years. The ratio decreased from 3.39 in December 2020 to 3.33 in December 2021, and then slightly increased to 3.34 in December 2022. However, there was a significant improvement in receivables turnover in December 2023, reaching 3.84, and a further increase to 4.25 in December 2024.
A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently. The upward trend in this ratio suggests that General Dynamics has been able to better manage its credit policies, ensuring timely collection of payments from customers. This improved efficiency in collecting receivables is a positive sign of the company's financial health and operational effectiveness.
It is important for General Dynamics to continue monitoring and managing its receivables turnover to sustain this positive trend, as it reflects the effectiveness of the company's credit and collection policies and impacts its overall liquidity and cash flow management.
Peer comparison
Dec 31, 2024