General Dynamics Corporation (GD)

Liquidity ratios

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
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
Quick ratio 0.72 0.72 0.72 0.75 0.79 0.81 0.80 0.13 0.85 0.16 0.15 0.21 0.94 0.21 0.20 0.12 0.18 0.09 0.14 0.29
Cash ratio 0.10 0.11 0.07 0.06 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

General Dynamics Corporation's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has shown stability over the years, ranging between 1.27 and 1.48, with the latest value at 1.37 as of December 31, 2024. This suggests that the company has sufficient current assets to cover its current liabilities.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also exhibited variations over time, ranging from 0.09 to 0.94. The ratio improved significantly to 0.79 as of December 31, 2023, suggesting a stronger ability to meet short-term obligations without relying on inventory.

The cash ratio, representing the most conservative liquidity measure by considering only cash and cash equivalents, has fluctuated between 0.06 and 0.29. The ratio was at its lowest point in recent years at 0.06 as of March 31, 2024, indicating a decline in the company's cash position, which might warrant further investigation into its cash management practices.

Overall, General Dynamics Corporation's liquidity ratios have shown variability but generally remain at levels that indicate a reasonable ability to meet short-term obligations. However, the company should continue to monitor its liquidity position to ensure stability and financial health.

See also:

General Dynamics Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 760.07 832.65 825.04 799.96 703.29 655.54 583.11 421.02 433.23 352.90 339.38 269.21 362.48 349.58 381.78 348.25 329.60 116.91 78.60 53.35

The cash conversion cycle of General Dynamics Corporation has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle indicates the average time taken by the company to convert its investments in inventory into cash receipts from customers.

Initially, the company's cash conversion cycle was relatively stable, averaging around 50 to 80 days. However, there was a significant increase in the cycle from December 31, 2020, to March 31, 2021, where it reached 348.25 days, indicating a delay in converting inventory into cash.

Subsequently, there were fluctuations in the cycle, with periods of improvement and deterioration. The cycle peaked at 832.65 days on September 30, 2024, indicating a prolonged period between investing in inventory and receiving cash from sales.

Overall, the increasing trend in the cash conversion cycle from 2020 to 2024 suggests potential challenges in managing inventory effectively and efficiently converting it into cash. This trend may have implications for the company's working capital management and liquidity position, highlighting the importance of analyzing and addressing the factors contributing to the prolonged cycle.