General Dynamics Corporation (GD)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,796,000 | 4,661,000 | 4,537,000 | 4,343,000 | 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 |
| Long-term debt | US$ in thousands | 7,260,000 | 7,262,000 | 7,257,000 | 8,752,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 22,063,000 | 22,973,000 | 22,036,000 | 21,410,000 | 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 |
| Return on total capital | 16.36% | 15.42% | 15.49% | 14.40% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 fluctuated over the period from March 31, 2020, to December 31, 2024. The return on total capital was relatively stable in the range of 15% to 17% during the first half of the period. However, there was a slight decline in the return on total capital towards the latter half of the period, with a decrease to 14% in the last quarter of 2024.
Overall, General Dynamics Corporation has maintained a healthy return on total capital, indicating its ability to generate profits relative to the total capital employed in its operations. The decreasing trend in the return on total capital towards the end of the period may warrant further analysis to understand the factors influencing the company's profitability and capital efficiency.
Peer comparison
Dec 31, 2024