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

Company name
Symbol
Return on total capital
General Dynamics Corporation
GD
16.36%
Huntington Ingalls Industries Inc
HII
9.49%