General Dynamics Corporation (GD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.76% | 92.22% | 91.64% | 91.85% | 91.91% |
| Operating profit margin | 10.05% | 10.04% | 10.69% | 10.82% | 10.90% |
| Pretax margin | 9.51% | 9.42% | 10.24% | 10.07% | 9.86% |
| Net profit margin | 7.93% | 7.84% | 8.60% | 8.47% | 8.35% |
General Dynamics Corporation has consistently maintained strong gross profit margins, ranging from 91.64% to 92.76% over the five-year period. This indicates the company's ability to generate profits after accounting for the cost of goods sold.
In terms of operating profit margins, General Dynamics has shown relative stability, with margins ranging from 10.04% to 10.90%. While the margins have remained above 10% for most years, there was a slight decline in 2023 and 2024.
The pretax margin of General Dynamics fluctuated between 9.42% and 10.24% during the period under review. Despite some variability, the pretax margin generally remained at a reasonable level, reflecting the company's ability to control expenses and generate profit before taxes.
However, the net profit margins of General Dynamics declined from 8.60% in 2022 to 7.93% in 2024. This trend suggests that the company's profitability after all expenses, including taxes, has slightly decreased over the years.
Overall, General Dynamics Corporation has maintained solid profitability ratios, with strong gross profit margins, relatively stable operating profit margins, and reasonable pretax margins. However, the declining trend in net profit margins may warrant further analysis to identify potential areas for improvement in profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.58% | 7.74% | 8.16% | 8.31% | 8.06% |
| Return on assets (ROA) | 6.77% | 6.05% | 6.57% | 6.50% | 6.17% |
| Return on total capital | 16.36% | 14.58% | 15.92% | 15.30% | 16.48% |
| Return on equity (ROE) | 17.14% | 15.56% | 18.26% | 18.46% | 20.22% |
General Dynamics Corporation's profitability ratios show a relatively stable performance over the years.
- Operating return on assets (Operating ROA) has shown a slight increase from 8.06% in 2020 to 8.58% in 2024, indicating that the company is effectively generating operating profits from its assets.
- Return on assets (ROA) has also shown a consistent improvement from 6.17% in 2020 to 6.77% in 2024, indicating that the company is efficiently utilizing its assets to generate profits.
- Return on total capital has fluctuated but generally remained within a narrow range, with a high of 16.48% in 2020 and a low of 14.58% in 2023. This ratio indicates the efficiency of the company in generating profits from both debt and equity capital.
- Return on equity (ROE) has shown a decreasing trend from 20.22% in 2020 to 17.14% in 2024, suggesting a slight decrease in the profitability of equity investments made by shareholders in the company.
Overall, General Dynamics Corporation's profitability ratios reflect a consistent performance in generating returns from its assets and capital, albeit with a slight decline in return on equity over the years.