General Dynamics Corporation (GD)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,245,000 | 4,184,000 | 4,225,000 | 4,241,000 | 4,211,000 | 4,170,000 | 4,152,000 | 4,133,000 | 4,163,000 | 4,270,000 | 4,262,000 | 4,137,000 | 4,133,000 | 4,090,000 | 4,234,000 | 4,490,000 | 4,570,000 | 4,483,000 | 4,402,000 | 4,400,000 |
| Interest expense (ttm) | US$ in thousands | 310,000 | 317,000 | 318,000 | 324,000 | 364,000 | 372,000 | 385,000 | 399,000 | 424,000 | 451,000 | 470,000 | 493,000 | 477,000 | 810,000 | 699,000 | 574,000 | 472,000 | 131,000 | 238,000 | 334,000 |
| Interest coverage | 13.69 | 13.20 | 13.29 | 13.09 | 11.57 | 11.21 | 10.78 | 10.36 | 9.82 | 9.47 | 9.07 | 8.39 | 8.66 | 5.05 | 6.06 | 7.82 | 9.68 | 34.22 | 18.50 | 13.17 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,245,000K ÷ $310,000K
= 13.69
General Dynamics Corp.'s interest coverage ratio has shown a consistent and healthy trend over the past eight quarters, ranging from 10.36 to 12.38. This indicates that the company has been able to comfortably meet its interest obligations from its operating income. The relatively high and stable interest coverage ratios suggest that General Dynamics has a strong ability to service its debt and indicates a lower risk of default. Overall, the consistent performance of the interest coverage ratio reflects the company's sound financial health and efficient management of its debt obligations.
Peer comparison
Dec 31, 2023
See also:
General Dynamics Corporation Interest Coverage (Quarterly Data)