General Dynamics Corporation (GD)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.13 | 0.16 | 0.18 | 0.21 | 0.19 |
| Debt-to-capital ratio | 0.25 | 0.29 | 0.33 | 0.37 | 0.39 |
| Debt-to-equity ratio | 0.33 | 0.41 | 0.50 | 0.59 | 0.64 |
| Financial leverage ratio | 2.53 | 2.57 | 2.78 | 2.84 | 3.28 |
General Dynamics Corporation's solvency ratios indicate a generally improving financial position over the years.
- The Debt-to-assets ratio of General Dynamics has decreased from 0.19 in 2020 to 0.13 in 2024, indicating that a smaller portion of the company's assets is funded by debt, which is a positive sign for creditors.
- The Debt-to-capital ratio has shown a declining trend from 0.39 in 2020 to 0.25 in 2024, suggesting that the company has been reducing its reliance on debt to fund its operations and investments.
- The Debt-to-equity ratio has decreased from 0.64 in 2020 to 0.33 in 2024, reflecting a reduction in financial leverage and a stronger equity position relative to debt.
- The Financial leverage ratio has also declined from 3.28 in 2020 to 2.53 in 2024, indicating that the company has been decreasing its reliance on debt to finance its assets.
Overall, the decreasing trend in these solvency ratios suggests that General Dynamics Corporation has been effectively managing its debt levels, strengthening its financial position, and reducing its financial risk over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 12.20 | 10.98 | 11.32 | 9.99 | 8.64 |
The interest coverage ratio for General Dynamics Corporation has shown a positive trend over the past five years, indicating the company's ability to comfortably meet its interest payment obligations. Starting at 8.64 in December 31, 2020, the ratio increased steadily to 9.99 in December 31, 2021, and further to 11.32 in December 31, 2022, demonstrating a strong capacity to cover its interest expenses with operating income.
In the subsequent years, the interest coverage ratio remained relatively stable, with values of 10.98 in December 31, 2023, and 12.20 in December 31, 2024. This consistent performance indicates the company's financial solidity and effective management of debt servicing requirements.
Overall, the increasing trend in the interest coverage ratio for General Dynamics Corporation reflects a healthy financial position, with the company generating sufficient operating income to comfortably cover its interest payments, providing confidence to creditors and investors regarding its financial stability.