General Dynamics Corporation (GD)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 55,880,000 | 57,312,000 | 55,442,000 | 55,246,000 | 54,810,000 | 53,525,000 | 52,556,000 | 52,096,000 | 51,585,000 | 51,116,000 | 50,481,000 | 50,876,000 | 50,073,000 | 51,370,000 | 51,183,000 | 49,963,000 | 51,308,000 | 50,258,000 | 50,222,000 | 53,710,000 |
| Total stockholders’ equity | US$ in thousands | 22,063,000 | 22,973,000 | 22,036,000 | 21,410,000 | 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 |
| Financial leverage ratio | 2.53 | 2.49 | 2.52 | 2.58 | 2.57 | 2.68 | 2.70 | 2.73 | 2.78 | 2.90 | 2.90 | 2.82 | 2.84 | 3.27 | 3.34 | 3.26 | 3.28 | 3.32 | 3.51 | 3.95 |
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 decreasing trend over the period from March 31, 2020, to December 31, 2024. The financial leverage ratio decreased from 3.95 on March 31, 2020, to 2.53 on December 31, 2024. A decreasing trend in the financial leverage ratio suggests that the company is relying less on debt financing and more on equity financing, which could indicate improved financial stability and risk management.
The ratio has fluctuated within this period, with some minor increases and decreases, but overall, the trend has been downwards. This indicates that the company has been gradually reducing its leverage and possibly focusing on strengthening its balance sheet by lowering its debt levels relative to equity.
The decreasing financial leverage ratio could imply that General Dynamics Corporation is becoming less leveraged and is in a better position to weather economic downturns or unexpected financial challenges. It also suggests that the company may have improved its financial flexibility and reduced its financial risk exposure over the years covered in the dataset.
Peer comparison
Dec 31, 2024
See also:
General Dynamics Corporation Financial Leverage (Quarterly Data)