General Dynamics Corporation (GD)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,245,000 | 4,211,000 | 4,163,000 | 4,133,000 | 4,570,000 |
| Total assets | US$ in thousands | 54,810,000 | 51,585,000 | 50,073,000 | 51,308,000 | 49,349,000 |
| Operating ROA | 7.74% | 8.16% | 8.31% | 8.06% | 9.26% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $4,245,000K ÷ $54,810,000K
= 7.74%
General Dynamics Corp.'s operating return on assets (operating ROA) has exhibited a declining trend over the past five years, with values decreasing from 9.52% in 2019 to 7.74% in 2023. This suggests that the company's ability to generate operating income from its total assets has weakened over this period. The 2023 operating ROA of 7.74% indicates that for every dollar of assets held by General Dynamics, the company generated approximately $0.0774 in operating income. This declining trend may be a cause for concern as it could indicate inefficiencies in asset utilization or declining operating profitability. Further analysis of the company's operational and financial performance is recommended to identify the underlying factors contributing to the decreasing operating ROA.
Peer comparison
Dec 31, 2023