General Dynamics Corporation (GD)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 55,880,000 | 54,810,000 | 51,585,000 | 50,073,000 | 51,308,000 |
| Operating ROA | 8.58% | 7.74% | 8.16% | 8.31% | 8.06% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,796,000K ÷ $55,880,000K
= 8.58%
General Dynamics Corporation's operating return on assets (ROA) has shown some fluctuations over the years. As of December 31, 2020, the operating ROA stood at 8.06%, indicating that the company generated $0.0806 in operating profit for every $1 of assets employed. The ratio improved slightly to 8.31% by December 31, 2021, before dipping to 8.16% by the end of 2022. In 2023, there was a further decline in the operating ROA to 7.74%, suggesting a decrease in the efficiency of utilizing assets to generate operating income.
However, General Dynamics Corporation's performance rebounded in 2024, with the operating ROA increasing to 8.58%. This improvement may indicate better operational efficiency and profitability relative to the assets employed in that year. Overall, while the company experienced some fluctuations in its operating ROA, it managed to achieve a relatively strong level of return on assets, showcasing its ability to generate operating income from its asset base.
Peer comparison
Dec 31, 2024