General Dynamics Corporation (GD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.22% | 91.64% | 91.85% | 91.91% | 9.71% |
| Operating profit margin | 10.04% | 10.69% | 10.82% | 10.90% | 11.61% |
| Pretax margin | 9.42% | 10.24% | 10.07% | 9.86% | 10.68% |
| Net profit margin | 7.84% | 8.60% | 8.47% | 8.35% | 8.85% |
General Dynamics Corp.'s profitability ratios have shown a declining trend over the past five years. The gross profit margin decreased from 17.94% in 2019 to 15.78% in 2023, indicating a decrease in the efficiency of production and marketing activities. The operating profit margin also declined from 11.81% in 2019 to 10.04% in 2023, suggesting a decrease in operational efficiency.
The pretax margin decreased from 10.68% in 2019 to 9.42% in 2023, indicating a decrease in profitability before accounting for taxes. The net profit margin also experienced a decline from 8.85% in 2019 to 7.84% in 2023, reflecting a decrease in net income relative to sales.
Overall, General Dynamics Corp.'s profitability has been on a downward trajectory, which may raise concerns about the company's ability to generate profits efficiently. Further analysis and investigation into the factors impacting profitability are warranted to understand the underlying reasons for this trend.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.74% | 8.16% | 8.31% | 8.06% | 9.26% |
| Return on assets (ROA) | 6.05% | 6.57% | 6.50% | 6.17% | 7.06% |
| Return on total capital | 14.58% | 15.92% | 15.30% | 16.48% | 20.33% |
| Return on equity (ROE) | 15.56% | 18.26% | 18.46% | 20.22% | 24.92% |
General Dynamics Corp. has shown a consistent performance in terms of profitability ratios over the past five years. The operating return on assets (Operating ROA) decreased slightly from 9.52% in 2019 to 7.74% in 2023, indicating a decline in operating efficiency in generating profits from its assets. However, it is noteworthy that the operating ROA remained above 7% in all years, reflecting the company's ability to efficiently manage its operations.
The return on assets (ROA) also saw a slight decrease from 7.13% in 2019 to 6.05% in 2023, indicating a lower overall profitability relative to its total assets. Similarly, the return on total capital decreased from 18.22% in 2019 to 13.89% in 2023, reflecting a decline in the company's ability to generate profits from its total invested capital.
On the other hand, the return on equity (ROE) showed a decreasing trend from 25.66% in 2019 to 15.56% in 2023. This suggests that the company's profitability in relation to its shareholders' equity has decreased over the years, which could be a concern for investors.
Overall, General Dynamics Corp. has maintained a reasonable level of profitability, but there are some indications of declining performance in terms of generating returns from its assets, total capital, and equity. Monitoring these ratios is essential to assess the company's financial health and growth prospects accurately.