General Dynamics Corporation (GD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 54,810,000 | 51,585,000 | 50,073,000 | 51,308,000 | 49,349,000 |
| Total stockholders’ equity | US$ in thousands | 21,299,000 | 18,568,000 | 17,641,000 | 15,661,000 | 13,978,000 |
| Financial leverage ratio | 2.57 | 2.78 | 2.84 | 3.28 | 3.53 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $54,810,000K ÷ $21,299,000K
= 2.57
General Dynamics Corp.'s financial leverage ratio has exhibited a decreasing trend over the past five years, declining from 3.60 in 2019 to 2.57 in 2023. This indicates that the company has been able to reduce its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that General Dynamics Corp. has a lower level of debt relative to its equity, which may imply less financial risk. It could also imply that the company is able to generate sufficient cash flows to support its operations and growth without needing a high level of debt financing. This trend may be viewed positively by investors and creditors as it indicates a more solid financial position and potentially lower default risk.
Peer comparison
Dec 31, 2023