General Dynamics Corporation (GD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,383,000 | 4,427,000 | 4,304,000 | 4,227,000 | 4,674,000 |
| Long-term debt | US$ in thousands | 8,754,000 | 9,243,000 | 10,490,000 | 9,995,000 | 9,010,000 |
| Total stockholders’ equity | US$ in thousands | 21,299,000 | 18,568,000 | 17,641,000 | 15,661,000 | 13,978,000 |
| Return on total capital | 14.58% | 15.92% | 15.30% | 16.48% | 20.33% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,383,000K ÷ ($8,754,000K + $21,299,000K)
= 14.58%
General Dynamics Corp.'s return on total capital has shown a decreasing trend over the past five years. The ratio was 13.89% in 2023, down from 14.49% in 2022, 14.29% in 2021, 14.42% in 2020, and significantly lower than the 18.22% reported in 2019. This decline indicates that the company's ability to generate returns from its total capital has weakened over the years. Further analysis is needed to determine the specific factors contributing to this trend and to assess the company's overall financial performance and efficiency in utilizing its capital.
Peer comparison
Dec 31, 2023