General Dynamics Corporation (GD)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,796,000 | 4,661,000 | 4,537,000 | 4,343,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 0 | 78,000 | 163,000 | 252,000 | 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 |
| Interest coverage | — | 59.76 | 27.83 | 17.23 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,796,000K ÷ $0K
= —
The interest coverage ratio of General Dynamics Corporation has shown a generally improving trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
We observed that the interest coverage ratio started at 7.82 on March 31, 2020, and fluctuated between 5.05 and 8.66 through September 30, 2020, indicating some variability in the company's ability to cover its interest payments. However, from December 31, 2020, onwards, the interest coverage ratio showed a consistent upward trend, reaching 13.69 by December 31, 2023.
The significant increase in the interest coverage ratio to 17.23 on March 31, 2024, followed by a sharp spike to 27.83 on June 30, 2024, and a further substantial jump to 59.76 on September 30, 2024, suggests a substantial improvement in General Dynamics' ability to service its interest obligations. This may be indicative of increased profitability, operating efficiency, or a decrease in interest expenses during this period.
It is important to note the absence of data for December 31, 2024, which may require further investigation to understand the sudden increase in the interest coverage ratio between September 30, 2024, and the subsequent period.
Overall, the trend in General Dynamics Corporation's interest coverage ratio demonstrates a positive trajectory, indicating an enhanced capacity to meet its interest obligations relative to its earnings, which is a favorable indicator of financial health and stability.
Peer comparison
Dec 31, 2024
See also:
General Dynamics Corporation Interest Coverage (Quarterly Data)