General Dynamics Corporation (GD)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 1,913,000 1,200,000 1,603,000 2,824,000 902,000
Short-term investments US$ in thousands 42,000 62,000 58,000 0
Receivables US$ in thousands 11,001,000 11,803,000 11,539,000 11,185,000 11,401,000
Total current liabilities US$ in thousands 16,432,000 15,341,000 13,978,000 15,964,000 16,801,000
Quick ratio 0.79 0.85 0.94 0.88 0.73

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,913,000K + $—K + $11,001,000K) ÷ $16,432,000K
= 0.79

The quick ratio of General Dynamics Corp. has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

In 2023, the quick ratio decreased to 0.92 compared to 0.96 in 2022. This indicates that the company may be facing some challenges in meeting its short-term obligations with its liquid assets. However, a quick ratio of 0.92 is still relatively close to 1, which suggests that General Dynamics Corp. may have sufficient liquidity to cover its short-term liabilities.

In 2021, the quick ratio was 1.05, which was the highest among the five years analyzed. This indicates that the company had a strong ability to meet its short-term obligations with its quick assets in that year.

Overall, while there have been fluctuations in the quick ratio over the years, General Dynamics Corp. has generally maintained a quick ratio above 0.8, which is considered acceptable in most industries. It is important for the company to continue monitoring its liquidity position to ensure it can meet its short-term obligations efficiently.


Peer comparison

Dec 31, 2023

Company name
Symbol
Quick ratio
General Dynamics Corporation
GD
0.79
Huntington Ingalls Industries Inc
HII
0.35

See also:

General Dynamics Corporation Quick Ratio