General Dynamics Corporation (GD)
Total asset 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 |
| Total assets | US$ in thousands | 54,810,000 | 51,585,000 | 50,073,000 | 51,308,000 | 49,349,000 |
| Total asset turnover | 0.77 | 0.76 | 0.77 | 0.74 | 0.80 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $42,272,000K ÷ $54,810,000K
= 0.77
General Dynamics Corp.'s total asset turnover has shown relatively stable performance over the past five years, ranging from 0.74 to 0.81. The ratio indicates the company's ability to generate sales revenue from its assets.
The average total asset turnover ratio for the period is 0.77, suggesting that for every dollar invested in total assets, the company generates $0.77 in sales. This implies that General Dynamics is efficient in utilizing its assets to generate revenue.
A consistent total asset turnover ratio around 0.77 indicates that the company has maintained a steady level of efficiency in utilizing its assets over the years. However, there could be room for improvement to increase the efficiency of asset utilization further.
Overall, while General Dynamics Corp. has demonstrated satisfactory asset turnover performance, the management may still want to focus on optimizing asset utilization to enhance profitability and productivity.
Peer comparison
Dec 31, 2023