General Dynamics Corporation (GD)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,782,000 | 3,315,000 | 3,390,000 | 3,257,000 | 3,167,000 |
| Total stockholders’ equity | US$ in thousands | 22,063,000 | 21,299,000 | 18,568,000 | 17,641,000 | 15,661,000 |
| ROE | 17.14% | 15.56% | 18.26% | 18.46% | 20.22% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,782,000K ÷ $22,063,000K
= 17.14%
General Dynamics Corporation's Return on Equity (ROE) has shown a fluctuating trend over the years based on the provided data. In 2020, the ROE was 20.22%, indicating that for every dollar of shareholders' equity, the company generated a return of 20.22%. However, there was a slight decrease in 2021 to 18.46%, followed by a further decrease in 2022 to 18.26%.
By the end of 2023, General Dynamics Corporation's ROE dropped to 15.56%, reflecting a decline in the company's ability to generate profits from shareholders' equity. However, the ROE rebounded in 2024 to 17.14%, showing an improvement from the previous year but still below the levels seen in 2020.
Overall, General Dynamics Corporation's ROE performance indicates some variability in its profitability and efficiency in utilizing shareholders' equity to generate returns over the years analyzed. Analysis of the factors driving these changes would be necessary to understand the underlying reasons for the fluctuating ROE trend.
Peer comparison
Dec 31, 2024