General Dynamics Corporation (GD)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,913,000 | 1,352,000 | 1,154,000 | 2,038,000 | 1,200,000 | 2,496,000 | 2,223,000 | 2,907,000 | 1,603,000 | 3,139,000 | 3,000,000 | 1,800,000 | 2,824,000 | 1,469,000 | 2,300,000 | 5,330,000 | 902,000 | 974,000 | 702,000 | 673,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 42,000 | — | — | — | 62,000 | — | — | — | 58,000 | 0 | 51,000 | 0 | 0 | 52,000 | 0 | — |
| 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 |
| Cash ratio | 0.12 | 0.08 | 0.07 | 0.13 | 0.08 | 0.16 | 0.15 | 0.21 | 0.12 | 0.21 | 0.20 | 0.12 | 0.18 | 0.09 | 0.14 | 0.29 | 0.05 | 0.06 | 0.04 | 0.04 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,913,000K
+ $—K)
÷ $16,432,000K
= 0.12
Based on the data provided for General Dynamics Corp.'s cash ratio over the last eight quarters, we can observe fluctuations in the company's ability to cover its short-term liabilities with its cash and cash equivalents. The cash ratio is calculated by dividing the company's cash and cash equivalents by its current liabilities.
In Q1 2022, General Dynamics had the highest cash ratio of 0.31, indicating a strong liquidity position. However, this ratio then decreased to 0.23 in Q2 2022 and further dropped to 0.19 in Q4 2022, suggesting a potential strain on the company's ability to cover its short-term obligations with cash.
Throughout the next four quarters, the cash ratio continued to fluctuate, with Q4 2023 showing a ratio of 0.25. While this ratio improved from the previous quarter, it still remains lower than the peak observed in Q1 2022.
Overall, the fluctuations in General Dynamics Corp.'s cash ratio indicate varying levels of liquidity and the company's ability to meet its short-term financial obligations solely with its cash reserves. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and liquidity position.
Peer comparison
Dec 31, 2023