General Dynamics Corporation (GD)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,913,000 | 1,352,000 | 1,154,000 | 2,038,000 | 1,200,000 | 2,496,000 | 2,223,000 | 2,907,000 | 1,603,000 | 3,139,000 | 3,000,000 | 1,800,000 | 2,824,000 | 1,469,000 | 2,300,000 | 5,330,000 | 902,000 | 974,000 | 702,000 | 673,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 42,000 | — | — | — | 62,000 | — | — | — | 58,000 | 0 | 51,000 | 0 | 0 | 52,000 | 0 | — |
| Receivables | US$ in thousands | 11,001,000 | 11,585,000 | 11,458,000 | — | 11,803,000 | — | — | — | 11,539,000 | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 16,801,000 | 18,227,000 | 18,014,000 | 15,382,000 |
| Quick ratio | 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 | 0.05 | 0.06 | 0.04 | 0.04 |
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 a declining trend over the past eight quarters, decreasing from 1.09 in Q1 2022 to 0.92 in Q4 2023. This indicates a decrease in the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 suggests that the company may have difficulty in meeting its current liabilities with its quick assets alone.
Although the quick ratio has fluctuated slightly over the quarters, it has generally remained below 1 since Q2 2022. This may raise concerns about the company's liquidity position and its ability to cover immediate financial obligations without relying on inventory.
A quick ratio closer to 1 is generally considered more favorable as it suggests a company has enough liquid assets to cover its short-term liabilities. Investors and creditors may closely monitor General Dynamics Corp.'s quick ratio in the future to assess its short-term financial health and ability to manage liquidity effectively.
Peer comparison
Dec 31, 2023