General Dynamics Corporation (GD)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 21,299,000 | 19,957,000 | 19,478,000 | 19,087,000 | 18,568,000 | 17,651,000 | 17,381,000 | 18,014,000 | 17,641,000 | 15,721,000 | 15,321,000 | 15,340,000 | 15,661,000 | 15,140,000 | 14,306,000 | 13,609,000 | 13,978,000 | 13,513,000 | 12,877,000 | 12,234,000 |
| Debt-to-equity ratio | 0.41 | 0.46 | 0.47 | 0.48 | 0.50 | 0.52 | 0.56 | 0.58 | 0.59 | 0.73 | 0.75 | 0.65 | 0.64 | 0.66 | 0.73 | 0.95 | 0.64 | 0.67 | 0.70 | 0.94 |
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 been showing a declining trend over the past eight quarters. The ratio decreased from 0.57 in Q4 2022 to 0.43 in Q4 2023. This downward trend indicates that the company is relying less on debt financing and has been gradually strengthening its equity position relative to its debt obligations.
A debt-to-equity ratio of less than 1 indicates that the company has more equity than debt, which can be viewed positively by investors and creditors as it signifies a lower financial risk. General Dynamics Corp.'s decreasing ratio suggests a healthier financial structure and potentially better long-term stability.
It is important to note that while the decreasing trend is generally viewed positively, a very low debt-to-equity ratio could also indicate underutilization of debt as a source of financing, which might limit the company's growth opportunities. Therefore, General Dynamics Corp. should aim to maintain a balanced level of debt and equity to optimize its capital structure and maximize shareholder value.
Peer comparison
Dec 31, 2023
See also:
General Dynamics Corporation Debt to Equity (Quarterly Data)