General Dynamics Corporation (GD)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,315,000 | 3,390,000 | 3,257,000 | 3,167,000 | 3,484,000 |
| Total stockholders’ equity | US$ in thousands | 21,299,000 | 18,568,000 | 17,641,000 | 15,661,000 | 13,978,000 |
| ROE | 15.56% | 18.26% | 18.46% | 20.22% | 24.92% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,315,000K ÷ $21,299,000K
= 15.56%
General Dynamics Corp.'s return on equity (ROE) has exhibited a declining trend over the past five years. The ROE stood at 15.56% at the end of 2023, down from 18.26% in 2022, and significantly lower compared to 25.66% in 2019. This downward trend indicates a diminishing ability of the company to generate profits from its shareholders' equity.
A lower ROE could signal less efficient utilization of shareholder funds to generate profits or declining profitability. The declining trend in ROE should be carefully monitored to assess whether General Dynamics Corp. is effectively managing its assets and generating sustainable profitability for its shareholders. Further analysis would be beneficial to understand the specific factors driving the decrease in ROE and to identify potential areas for improvement.
Peer comparison
Dec 31, 2023