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