General Dynamics Corporation (GD)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 55,880,000 | 54,810,000 | 51,585,000 | 50,073,000 | 51,308,000 |
| Total stockholders’ equity | US$ in thousands | 22,063,000 | 21,299,000 | 18,568,000 | 17,641,000 | 15,661,000 |
| Financial leverage ratio | 2.53 | 2.57 | 2.78 | 2.84 | 3.28 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $55,880,000K ÷ $22,063,000K
= 2.53
General Dynamics Corporation's financial leverage ratio has shown a declining trend over the past five years, starting at 3.28 on December 31, 2020, and decreasing to 2.53 on December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that General Dynamics has a stronger equity base relative to its debt, which can enhance financial stability and reduce bankruptcy risk. The decreasing trend in the financial leverage ratio may indicate improved financial health and lower financial risk for the company.
Peer comparison
Dec 31, 2024