General Dynamics Corporation (GD)
Debt-to-assets ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 9,010,000 | 8,989,000 | 8,975,000 | 11,451,000 |
| Total assets | US$ in thousands | 54,810,000 | 53,525,000 | 52,556,000 | 52,096,000 | 51,585,000 | 51,116,000 | 50,481,000 | 50,876,000 | 50,073,000 | 51,370,000 | 51,183,000 | 49,963,000 | 51,308,000 | 50,258,000 | 50,222,000 | 53,710,000 | 49,349,000 | 48,788,000 | 48,074,000 | 47,466,000 |
| Debt-to-assets ratio | 0.16 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.21 | 0.21 | 0.22 | 0.22 | 0.20 | 0.19 | 0.20 | 0.21 | 0.24 | 0.18 | 0.18 | 0.19 | 0.24 |
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 been relatively stable over the past eight quarters, ranging from 0.17 to 0.23. This ratio indicates the proportion of the company's assets that are financed through debt.
A lower debt-to-assets ratio suggests that General Dynamics relies less on debt to fund its operations and investments, which can be viewed positively by creditors and investors as it implies lower financial risk.
On the other hand, the slight increase in the ratio from 0.17 in Q4 2023 to 0.23 in Q1 2022 may indicate that the company has taken on more debt relative to its assets over this time period. This upward trend could be a cause for concern as it may suggest increased financial leverage and higher risk exposure.
Overall, a stable debt-to-assets ratio within a reasonable range is generally desirable as it indicates a healthy balance between debt and assets in General Dynamics Corp.'s capital structure, ensuring financial stability and flexibility. However, management should closely monitor any significant deviations from this trend to avoid potential financial distress.
Peer comparison
Dec 31, 2023
See also:
General Dynamics Corporation Debt to Assets (Quarterly Data)