General Dynamics Corporation (GD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,697,000 | 1,913,000 | 1,200,000 | 1,603,000 | 2,824,000 |
| Short-term investments | US$ in thousands | — | 13,000 | 42,000 | 62,000 | 58,000 |
| Total current liabilities | US$ in thousands | 17,824,000 | 16,432,000 | 15,341,000 | 13,978,000 | 15,964,000 |
| Cash ratio | 0.10 | 0.12 | 0.08 | 0.12 | 0.18 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,697,000K
+ $—K)
÷ $17,824,000K
= 0.10
The cash ratio of General Dynamics Corporation has shown a decreasing trend over the years, declining from 0.18 as of December 31, 2020, to 0.10 as of December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has diminished over this period. While the ratio fluctuated slightly in the intervening years, it did not return to the initial level observed in 2020. It is essential for General Dynamics to monitor its liquidity position closely and potentially consider strategies to improve its ability to meet its short-term obligations with readily available cash resources.
Peer comparison
Dec 31, 2024