General Dynamics Corporation (GD)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,796,000 | 4,383,000 | 4,427,000 | 4,304,000 | 4,227,000 |
| Long-term debt | US$ in thousands | 7,260,000 | 8,754,000 | 9,243,000 | 10,490,000 | 9,995,000 |
| Total stockholders’ equity | US$ in thousands | 22,063,000 | 21,299,000 | 18,568,000 | 17,641,000 | 15,661,000 |
| Return on total capital | 16.36% | 14.58% | 15.92% | 15.30% | 16.48% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,796,000K ÷ ($7,260,000K + $22,063,000K)
= 16.36%
General Dynamics Corporation's return on total capital has shown variability over the past five years. The ratio ranged from a high of 16.48% on December 31, 2020, to a low of 14.58% on December 31, 2023, with fluctuations in between. Overall, the trend indicates that the company has been able to generate returns on its total capital, with the ratio averaging around 15.73% over the period. This suggests that General Dynamics has been effectively utilizing its total capital to generate profits, albeit with some fluctuations in performance. It is important for the company to maintain a consistent focus on optimizing its capital allocation strategies to sustain and potentially improve its return on total capital in the future.
Peer comparison
Dec 31, 2024