Analysis of Debt
Total Debt (Carrying Amount)
General Dynamics Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
- Short-term debt and current portion of long-term debt
- The short-term debt increased from 501 million USD at the end of 2015 to 900 million USD in 2016. It then sharply rose to 2,973 million USD by the end of 2017 before slightly declining to 2,920 million USD in 2018. Data for 2019 is missing, so trends beyond 2018 cannot be assessed.
- Long-term debt, excluding current portion
- Long-term debt showed a moderate increase from 2,898 million USD in 2015 to 2,988 million USD in 2016. It further rose to 3,980 million USD in 2017, followed by a significant jump to 11,444 million USD in 2018. However, there was a noticeable decline to 9,010 million USD in 2019.
- Total short- and long-term debt principal (carrying amount)
- Total debt increased steadily from 3,399 million USD in 2015 to 3,888 million USD in 2016, followed by a modest increase to 3,982 million USD in 2017. Substantial growth occurred in 2018, with total debt reaching 12,417 million USD. In 2019, total debt decreased slightly to 11,930 million USD.
- Overall analysis
- The data indicates a significant expansion of both short-term and long-term debt in 2017 and especially in 2018, contributing to a major increase in the total debt burden. While short-term debt levels stabilized somewhat after 2017, long-term debt surged in 2018 before declining notably in 2019. The total debt shows a pattern of sharp increase followed by a moderate decrease, suggesting that the company may have undertaken substantial financing activities in the years ending 2017 and 2018, with some reduction or repayment occurring in 2019. The missing short-term debt value for 2019 limits complete trend analysis for that year.
Total Debt (Fair Value)
| Dec 31, 2019 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total short- and long-term debt principal (fair value) | 12,339) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.03 |
Based on: 10-K (reporting date: 2019-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 2.97%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 2.88% | 2,000) | 58) | |
| 3.00% | 2,000) | 60) | |
| 3.88% | 500) | 19) | |
| 2.25% | 1,000) | 23) | |
| 3.38% | 750) | 25) | |
| 1.88% | 500) | 9) | |
| 2.38% | 500) | 12) | |
| 3.50% | 750) | 26) | |
| 2.13% | 500) | 11) | |
| 2.63% | 500) | 13) | |
| 3.75% | 1,000) | 38) | |
| 3.60% | 500) | 18) | |
| Total | 10,500) | 311) | |
| 2.97% | |||
Based on: 10-K (reporting date: 2019-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 311 ÷ 10,500 = 2.97%