General Dynamics Corporation (GD)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,796,000 | 4,383,000 | 4,427,000 | 4,304,000 | 4,227,000 |
| Interest expense | US$ in thousands | 393,000 | 399,000 | 391,000 | 431,000 | 489,000 |
| Interest coverage | 12.20 | 10.98 | 11.32 | 9.99 | 8.64 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,796,000K ÷ $393,000K
= 12.20
General Dynamics Corporation's interest coverage ratio has shown a positive trend over the past five years, increasing from 8.64 in December 2020 to 12.20 in December 2024. This indicates that the company's ability to meet its interest obligations has been improving, as it has more operating income available to cover its interest expenses. The consistent growth in the interest coverage ratio suggests that General Dynamics has been effectively managing its interest-bearing debt and generating sufficient earnings to comfortably service its debt payments. This upward trend is a favorable indicator of the company's financial health and stability, reflecting a stronger ability to handle debt obligations.
Peer comparison
Dec 31, 2024