General Dynamics Corporation (GD)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days 951.66 700.31 621.72 683.04 64.78
Days of sales outstanding (DSO) days 94.99 109.32 109.48 107.65 105.75
Number of days of payables days 343.37 376.41 368.73 350.97 32.48
Cash conversion cycle days 703.29 433.23 362.48 439.71 138.05

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 951.66 + 94.99 – 343.37
= 703.29

The cash conversion cycle of General Dynamics Corp. has shown some fluctuation over the past five years.

In 2023, the cash conversion cycle increased to 151.20 days from 141.88 days in 2022, indicating a longer time taken to convert company resources into cash. This may be a result of slower collections from customers, longer inventory turnover, or extended payment cycles to suppliers.

In 2021, there was a slight improvement in the cash conversion cycle to 134.22 days, reflecting better efficiency in managing working capital compared to the previous years. However, this improvement was not sustained as the cycle increased to 139.91 days in 2020 and continued to rise in 2019 to 141.29 days.

Overall, the trend in the cash conversion cycle for General Dynamics Corp. has been inconsistent, with periods of improvement followed by increases in the time taken to convert resources into cash. This highlights the importance of effective working capital management to enhance liquidity and operational efficiency.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
General Dynamics Corporation
GD
703.29
Huntington Ingalls Industries Inc
HII
-96.28

See also:

General Dynamics Corporation Cash Conversion Cycle