General Dynamics Corporation (GD)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,796,000 | 4,245,000 | 4,211,000 | 4,163,000 | 4,133,000 |
| Revenue | US$ in thousands | 47,716,000 | 42,272,000 | 39,407,000 | 38,469,000 | 37,925,000 |
| Operating profit margin | 10.05% | 10.04% | 10.69% | 10.82% | 10.90% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $4,796,000K ÷ $47,716,000K
= 10.05%
General Dynamics Corporation's operating profit margin has shown a slight decrease over the period from December 31, 2020 to December 31, 2024. The operating profit margin decreased from 10.90% in December 2020 to 10.05% in December 2024. This indicates that the company's ability to generate profits from its core operations has marginally declined over the years. While a higher operating profit margin is generally desirable as it reflects efficiency in managing operating expenses relative to sales, the gradual decrease may warrant further examination into the factors influencing the company's profitability. This trend may be a signal for the company to assess its cost structure and operational efficiency to maintain or improve its profitability in the future.
Peer comparison
Dec 31, 2024