General Dynamics Corporation (GD)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,245,000 | 4,184,000 | 4,225,000 | 4,241,000 | 4,211,000 | 4,170,000 | 4,152,000 | 4,133,000 | 4,163,000 | 4,270,000 | 4,262,000 | 4,137,000 | 4,133,000 | 4,090,000 | 4,234,000 | 4,490,000 | 4,570,000 | 4,483,000 | 4,402,000 | 4,400,000 |
| Long-term debt | US$ in thousands | 8,754,000 | 9,248,000 | 9,247,000 | 9,245,000 | 9,243,000 | 9,239,000 | 9,741,000 | 10,491,000 | 10,490,000 | 11,485,000 | 11,485,000 | 9,995,000 | 9,995,000 | 9,978,000 | 10,470,000 | 12,951,000 | 9,010,000 | 8,989,000 | 8,975,000 | 11,451,000 |
| Total stockholders’ equity | US$ in thousands | 21,299,000 | 19,957,000 | 19,478,000 | 19,087,000 | 18,568,000 | 17,651,000 | 17,381,000 | 18,014,000 | 17,641,000 | 15,721,000 | 15,321,000 | 15,340,000 | 15,661,000 | 15,140,000 | 14,306,000 | 13,609,000 | 13,978,000 | 13,513,000 | 12,877,000 | 12,234,000 |
| Return on total capital | 14.13% | 14.33% | 14.71% | 14.97% | 15.14% | 15.51% | 15.31% | 14.50% | 14.80% | 15.70% | 15.90% | 16.33% | 16.11% | 16.28% | 17.09% | 16.91% | 19.88% | 19.92% | 20.14% | 18.58% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,245,000K ÷ ($8,754,000K + $21,299,000K)
= 14.13%
General Dynamics Corp. has displayed consistent return on total capital over the past eight quarters, ranging between 13.89% and 14.49%. The company's return on total capital appears to be relatively stable, with slight fluctuations within a narrow band. Despite minor variations, the figures generally indicate that General Dynamics has been effectively utilizing its total capital to generate returns for its shareholders. The consistently healthy return on total capital suggests that the company has been efficiently deploying its resources to generate profits. Going forward, it will be important for General Dynamics to sustain this trend of optimizing its capital utilization to drive continued financial performance and create value for its stakeholders.
Peer comparison
Dec 31, 2023