General Dynamics Corporation (GD)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 24,386,000 | 25,743,000 | 24,312,000 | 24,196,000 | 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 |
| Total current liabilities | US$ in thousands | 17,824,000 | 19,557,000 | 18,257,000 | 16,790,000 | 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 |
| Current ratio | 1.37 | 1.32 | 1.33 | 1.44 | 1.44 | 1.43 | 1.39 | 1.39 | 1.37 | 1.34 | 1.40 | 1.48 | 1.43 | 1.48 | 1.44 | 1.35 | 1.35 | 1.29 | 1.27 | 1.34 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $24,386,000K ÷ $17,824,000K
= 1.37
General Dynamics Corporation's current ratio has exhibited some fluctuations over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, ranged from a low of 1.27 in June 2020 to a high of 1.48 in both September 2021 and March 2022.
Generally, a current ratio above 1 indicates that a company has enough current assets to cover its short-term liabilities. General Dynamics Corporation's current ratio has mostly remained above 1, indicating that the company has had sufficient liquidity to meet its short-term obligations.
It is worth noting that the current ratio dipped below 1.3 in June 2024, which may be a point of concern as it suggests that the company's current assets may be less than its current liabilities by a relatively small margin. Management should closely monitor the current ratio to ensure that the company maintains a healthy level of liquidity to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024