General Dynamics Corporation (GD)

Solvency ratios

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
Debt-to-assets ratio 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 0.18 0.18 0.19 0.24
Debt-to-capital ratio 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 0.39 0.40 0.41 0.48
Debt-to-equity ratio 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 0.64 0.67 0.70 0.94
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

General Dynamics Corp.'s solvency ratios provide insight into the company's ability to meet its long-term financial obligations.

The Debt-to-assets ratio remained relatively stable around 0.17 to 0.23 over the last eight quarters, indicating that the company has maintained a conservative level of debt in relation to its total assets.

The Debt-to-capital ratio, which measures the proportion of debt to total capital (debt and equity), increased gradually from 0.30 to 0.39 during the same period. This suggests that General Dynamics has been relying more on debt financing compared to equity.

The Debt-to-equity ratio, a key indicator of financial leverage, shows an increasing trend from 0.43 to 0.64 over the past eight quarters. This indicates a growing reliance on debt funding in comparison to equity, which could potentially increase financial risk and interest obligations for the company.

The Financial leverage ratio, which quantifies the proportion of assets supported by equity, demonstrates a consistent rise from 2.57 to 2.82. This suggests that General Dynamics has been increasingly leveraging debt to finance its operations, leading to higher financial leverage.

Overall, these solvency ratios indicate a shift towards more debt financing and increasing financial leverage for General Dynamics Corp. It is important for investors and stakeholders to monitor these trends closely to assess the company's long-term financial stability and risk profile.

Coverage ratios

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
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

Based on the provided data on General Dynamics Corp.'s interest coverage ratios over the past eight quarters, we observe consistent and healthy values ranging from 10.36 to 12.38. The trend shows a gradual increase in the company's ability to cover its interest expenses over time.

An interest coverage ratio above 1 indicates that General Dynamics Corp. is generating sufficient operating income to cover its interest payments. The consistently high ratios of around 11 to 12 suggest that the company has a strong ability to meet its interest obligations from its operating earnings.

This stable and robust interest coverage performance demonstrates General Dynamics Corp.'s financial strength and ability to manage its debt effectively. It indicates that the company is in a good position to meet its debt obligations and interest payments, which is a positive signal for investors and creditors.

See also:

General Dynamics Corporation Solvency Ratios (Quarterly Data)