General Dynamics Corporation (GD)
Working capital 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 current assets | US$ in thousands | 23,615,000 | 21,063,000 | 19,987,000 | 21,543,000 | 20,288,000 |
| Total current liabilities | US$ in thousands | 16,432,000 | 15,341,000 | 13,978,000 | 15,964,000 | 16,801,000 |
| Working capital turnover | 5.89 | 6.89 | 6.40 | 6.80 | 11.28 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $42,272,000K ÷ ($23,615,000K – $16,432,000K)
= 5.89
General Dynamics Corp.'s working capital turnover has been fluctuating over the past five years, ranging from a low of 5.89 in 2023 to a high of 13.21 in 2019. The working capital turnover indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio generally suggests more efficient management of working capital.
In 2023, the working capital turnover decreased to 5.89 from 6.89 in 2022, indicating a decline in the efficiency of working capital management. This could be due to various factors such as changes in inventory management, accounts receivable collection, or accounts payable payment policies.
In comparison, the working capital turnover was relatively stable around 6.40 to 6.80 in the years 2021 and 2020. This suggests a consistent level of efficiency in utilizing working capital during these years.
Notably, in 2019, the working capital turnover spiked to 13.21, indicating a significant improvement in working capital management efficiency. This could be attributed to effective strategies implemented by the company to optimize its working capital resources.
Overall, General Dynamics Corp. should closely monitor its working capital turnover and identify trends or factors influencing it to ensure optimal management of its working capital for supporting business operations and growth.
Peer comparison
Dec 31, 2023