General Dynamics Corporation (GD)
Debt-to-equity 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-equity ratio | 0.41 | 0.50 | 0.59 | 0.64 | 0.64 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,754,000K ÷ $21,299,000K
= 0.41
General Dynamics Corp.'s debt-to-equity ratio has shown a decreasing trend over the past five years, declining from 0.88 in 2019 to 0.43 in 2023. A decreasing debt-to-equity ratio indicates that the company is relying less on debt financing relative to equity financing. This decreasing trend suggests that General Dynamics Corp. has been able to lower its debt levels or increase its equity capital during this period.
A debt-to-equity ratio of 0.43 in 2023 implies that General Dynamics Corp. has $0.43 in debt for every $1 of equity. This indicates a relatively conservative capital structure, with a lower level of financial leverage. A lower debt-to-equity ratio generally signifies lower financial risk and greater financial stability for the company.
Overall, the declining trend in General Dynamics Corp.'s debt-to-equity ratio reflects a positive development in the company's financial structure, indicating a prudent approach to managing debt levels and maintaining a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023