General Dynamics Corporation (GD)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 21,299,000 | 18,568,000 | 17,641,000 | 15,661,000 | 13,978,000 |
| Debt-to-capital ratio | 0.29 | 0.33 | 0.37 | 0.39 | 0.39 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,754,000K ÷ ($8,754,000K + $21,299,000K)
= 0.29
The debt-to-capital ratio for General Dynamics Corp. has shown a decreasing trend over the past five years, indicating a reduction in the company's reliance on debt to finance its operations and investments. As of December 31, 2023, the ratio stands at 0.30, which is lower compared to the ratios in the previous years. This decrease suggests that General Dynamics has been able to strengthen its capital structure by decreasing its debt levels relative to its total capital.
A lower debt-to-capital ratio signifies a healthier financial position and lower financial risk for the company, as it indicates a higher proportion of equity financing compared to debt financing. General Dynamics' decreasing trend in this ratio may indicate improved financial stability and the ability to generate sufficient internal funds to support its operations and growth without having to rely heavily on borrowing.
Overall, the decreasing debt-to-capital ratio for General Dynamics Corp. reflects a positive trend in terms of financial leverage and capital structure management, which could enhance the company's ability to weather economic downturns and pursue strategic initiatives.
Peer comparison
Dec 31, 2023