General Dynamics Corporation (GD)

Debt-to-assets ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 7,260,000 8,754,000 9,243,000 10,490,000 9,995,000
Total assets US$ in thousands 55,880,000 54,810,000 51,585,000 50,073,000 51,308,000
Debt-to-assets ratio 0.13 0.16 0.18 0.21 0.19

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,260,000K ÷ $55,880,000K
= 0.13

General Dynamics Corporation's debt-to-assets ratio has shown a downward trend over the past five years, decreasing from 0.19 in 2020 to 0.13 in 2024. This indicates that the company has been reducing its reliance on debt in relation to its total assets, which can be seen as a positive sign of financial health and stability. A lower debt-to-assets ratio suggests that the company is effectively managing its debt levels and maintaining a more conservative capital structure. It also indicates that a larger proportion of the company's assets are financed by equity rather than debt. This trend may be viewed favorably by investors and creditors, as it signifies a lower risk of financial distress and greater capacity to withstand economic downturns.


Peer comparison

Dec 31, 2024

Company name
Symbol
Debt-to-assets ratio
General Dynamics Corporation
GD
0.13
Huntington Ingalls Industries Inc
HII
0.26

See also:

General Dynamics Corporation Debt to Assets