General Dynamics Corporation (GD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.44 | 1.37 | 1.43 | 1.35 | 1.21 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $23,615,000K ÷ $16,432,000K
= 1.44
The current ratio of General Dynamics Corp. has exhibited a generally stable trend over the past five years, ranging from 1.18 in 2019 to 1.44 in 2023. The current ratio measures the company's ability to cover its short-term obligations with its current assets.
A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting it is in a good position to meet its short-term obligations. General Dynamics' current ratios over the past five years have consistently remained above 1, reflecting a healthy liquidity position.
The gradual increase in the current ratio from 1.18 in 2019 to 1.44 in 2023 indicates an improvement in the company's liquidity position and ability to cover its short-term liabilities. This suggests effective management of current assets and liabilities over the years.
Overall, the current ratio analysis indicates that General Dynamics Corp. has maintained a strong liquidity position, which is essential for financial stability and meeting short-term obligations.
Peer comparison
Dec 31, 2023