General Dynamics Corporation (GD)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 42,363,000 | 41,560,000 | 40,963,000 | 39,994,000 | 39,407,000 | 38,900,000 | 38,480,000 | 38,497,000 | 38,469,000 | 38,684,000 | 38,528,000 | 38,549,000 | 37,925,000 | 38,199,000 | 38,536,000 | 38,844,000 | 39,346,000 | 38,856,000 | 38,186,000 | 37,932,000 |
| Total current assets | US$ in thousands | 23,615,000 | 22,779,000 | 21,825,000 | 21,588,000 | 21,063,000 | 21,005,000 | 20,579,000 | 20,794,000 | 19,987,000 | 21,686,000 | 21,580,000 | 20,408,000 | 21,543,000 | 20,865,000 | 21,135,000 | 24,741,000 | 20,288,000 | 20,151,000 | 19,557,000 | 18,867,000 |
| Total current liabilities | US$ in thousands | 16,432,000 | 15,962,000 | 15,686,000 | 15,484,000 | 15,341,000 | 15,659,000 | 14,736,000 | 14,036,000 | 13,978,000 | 14,604,000 | 14,981,000 | 15,153,000 | 15,964,000 | 16,120,000 | 16,606,000 | 18,440,000 | 16,801,000 | 18,227,000 | 18,014,000 | 15,382,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $42,363,000K ÷ ($23,615,000K – $16,432,000K)
= 5.90
The working capital turnover ratio of General Dynamics Corp. has shown a fluctuating trend over the past eight quarters. The company's working capital turnover has ranged from a low of 5.69 in Q1 2022 to a high of 7.27 in Q3 2022.
A higher working capital turnover ratio indicates that General Dynamics Corp. is able to generate more revenue relative to its working capital investment. This suggests that the company is effectively utilizing its current assets to support its operations and generate sales.
The recent decrease in the working capital turnover ratio from Q3 2022 to Q4 2023 may indicate that the company's efficiency in turning working capital into revenue has slightly declined. It would be important for the company to monitor this ratio closely and investigate the reasons behind the decrease to ensure optimal utilization of its working capital.
Overall, General Dynamics Corp. has maintained relatively strong working capital turnover ratios, indicating efficient management of its current assets in generating sales.
Peer comparison
Dec 31, 2023
See also:
General Dynamics Corporation Working Capital Turnover (Quarterly Data)