General Dynamics Corporation (GD)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 22,063,000 | 21,299,000 | 18,568,000 | 17,641,000 | 15,661,000 |
| Debt-to-equity ratio | 0.33 | 0.41 | 0.50 | 0.59 | 0.64 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,260,000K ÷ $22,063,000K
= 0.33
General Dynamics Corporation's debt-to-equity ratio has shown a declining trend over the past five years, starting at 0.64 in December 2020 and decreasing to 0.33 by December 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations in relation to shareholders' equity. A decreasing debt-to-equity ratio may suggest a stronger financial position and lower financial risk for the company, as it implies less financial leverage and a greater proportion of shareholder equity in the capital structure. In General Dynamics' case, the decreasing trend in the debt-to-equity ratio demonstrates a pattern of improved financial health and stability over the years.
Peer comparison
Dec 31, 2024