General Dynamics Corporation (GD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 11,225,000 | 11,001,000 | 11,803,000 | 11,539,000 | 11,185,000 |
| Total current liabilities | US$ in thousands | 17,824,000 | 16,432,000 | 15,341,000 | 13,978,000 | 15,964,000 |
| Quick ratio | 0.72 | 0.79 | 0.85 | 0.94 | 0.88 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,697,000K
+ $—K
+ $11,225,000K)
÷ $17,824,000K
= 0.72
The quick ratio of General Dynamics Corporation, which measures the company's ability to meet its short-term obligations using its most liquid assets, has exhibited a fluctuating trend over the years. As of December 31, 2020, the quick ratio was 0.88, indicating that the company had $0.88 in liquid assets available to cover each dollar of current liabilities.
By December 31, 2021, the quick ratio improved slightly to 0.94, suggesting a better ability to meet short-term obligations. However, in the following years, the quick ratio declined. By December 31, 2024, the quick ratio had decreased to 0.72, indicating a potential strain on the company's short-term liquidity position.
Overall, the trend in General Dynamics Corporation's quick ratio indicates some variability in its ability to quickly cover its current liabilities with its liquid assets. It is essential for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024