General Dynamics Corporation (GD)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,754,000 | 9,243,000 | 10,490,000 | 9,995,000 | 9,010,000 |
| Total assets | US$ in thousands | 54,810,000 | 51,585,000 | 50,073,000 | 51,308,000 | 49,349,000 |
| Debt-to-assets ratio | 0.16 | 0.18 | 0.21 | 0.19 | 0.18 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,754,000K ÷ $54,810,000K
= 0.16
The debt-to-assets ratio of General Dynamics Corp. has shown a decreasing trend over the past five years. As of December 31, 2023, the ratio stood at 0.17, indicating that only 17% of the company's assets are financed by debt. This represents an improvement from the ratio of 0.20 in 2022, 0.23 in 2021, 0.25 in 2020, and 0.24 in 2019.
The declining trend in the debt-to-assets ratio suggests that General Dynamics Corp. has been able to reduce its reliance on debt to finance its operations and investments. This can be seen as a positive sign of financial health, as a lower debt-to-assets ratio typically indicates lower financial risk and greater stability for the company.
Overall, the decreasing trend in the debt-to-assets ratio for General Dynamics Corp. reflects prudent financial management and effective use of resources to support its business activities.
Peer comparison
Dec 31, 2023