General Dynamics Corporation (GD)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 49,349,000 | 48,788,000 | 48,074,000 | 47,466,000 |
| 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 |
| Financial leverage ratio | 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 | 3.53 | 3.61 | 3.73 | 3.88 |
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 slight decrease in recent quarters, from 2.78 in Q4 2022 to 2.57 in Q4 2023. This indicates a trend towards lower financial leverage over time. However, it is worth noting that the ratio fluctuated within a relatively narrow range, with the highest being 2.90 in both Q2 and Q3 of 2022.
A financial leverage ratio of 2.57 in Q4 2023 suggests that General Dynamics Corp. finances its operations primarily through debt capital, with $2.57 in debt for every dollar of equity. While a lower financial leverage ratio can signify a less risky financial structure, it may also indicate lower potential returns on equity for shareholders.
Overall, the trend of decreasing financial leverage ratio may indicate a strategic shift towards a more conservative financing approach by General Dynamics Corp. It is important for investors and analysts to monitor this ratio over time to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023
See also:
General Dynamics Corporation Financial Leverage (Quarterly Data)