General Dynamics Corporation (GD)

Solvency ratios

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
Debt-to-assets ratio 0.13 0.13 0.13 0.16 0.16 0.17 0.18 0.18 0.18 0.18 0.19 0.21 0.21 0.22 0.22 0.20 0.19 0.20 0.21 0.24
Debt-to-capital ratio 0.25 0.24 0.25 0.29 0.29 0.32 0.32 0.33 0.33 0.34 0.36 0.37 0.37 0.42 0.43 0.39 0.39 0.40 0.42 0.49
Debt-to-equity ratio 0.33 0.32 0.33 0.41 0.41 0.46 0.47 0.48 0.50 0.52 0.56 0.58 0.59 0.73 0.75 0.65 0.64 0.66 0.73 0.95
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

General Dynamics Corporation's solvency ratios demonstrate a consistently improving financial strength and stability over the analyzed period. The Debt-to-Assets ratio has steadily decreased from 0.24 as of March 31, 2020, to 0.13 as of December 31, 2024, indicating that the company has reduced its reliance on debt to finance its assets.

Similarly, the Debt-to-Capital ratio has witnessed a decline from 0.49 as of March 31, 2020, to 0.25 as of December 31, 2024. This trend suggests that General Dynamics has been efficient in managing its capital structure by decreasing its debt relative to its total capital.

Moreover, the Debt-to-Equity ratio has consistently dropped from 0.95 as of March 31, 2020, to 0.33 as of December 31, 2024. This reduction reflects a decreasing dependence on debt funding compared to equity, highlighting improved financial health and lower financial risk.

The Financial Leverage ratio has also shown a downward trend, decreasing from 3.95 as of March 31, 2020, to 2.53 as of December 31, 2024. This reduction indicates that General Dynamics has reduced its financial leverage, translating to lower financial risk and enhanced solvency.

Overall, the decreasing trend in these solvency ratios reflects General Dynamics Corporation's strengthened financial position and ability to meet its financial obligations with greater confidence and stability.

Coverage ratios

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
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

General Dynamics Corporation's interest coverage ratio has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt using its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a company is more capable of servicing its debt obligations.

The interest coverage ratio for General Dynamics increased from 7.82 on March 31, 2020, to a peak of 17.23 on March 31, 2024, signifying an improving ability to cover interest expenses with operating profits over this period. However, there was a significant spike to 27.83 on June 30, 2024, and a sharp increase to 59.76 on September 30, 2024. Such high values may indicate either substantial growth in operating profits or a decline in interest expenses during these periods.

It's important to note the unusual increase on September 30, 2024, to 59.76, which could be due to various factors such as a one-time event, changes in accounting methods, or a significant increase in operating profits. The absence of data for December 31, 2024, suggests a potential reporting issue or an ongoing financial period at the time of data collection.

Overall, General Dynamics Corporation's interest coverage ratio demonstrates a generally positive trend over the analyzed period, reflecting the company's ability to comfortably meet its interest obligations with its operating earnings.

See also:

General Dynamics Corporation Solvency Ratios (Quarterly Data)