General Dynamics Corp. (NYSE:GD)

Total inventories experienced a significant upward trajectory between December 31, 2015, and December 31, 2019, increasing from 3,366 million US dollars to 6,306 million US dollars. The most pronounced acceleration in inventory accumulation occurred between 2016 and 2017, where total values rose by approximately 50.5% in a single fiscal year.

Work in Process (WIP)

Work in process represents the primary driver of overall inventory growth. This category increased from 1,889 million US dollars in 2015 to 4,419 million US dollars in 2019, reflecting a total increase of approximately 133.9%. A substantial surge was observed in 2017, where WIP nearly doubled from the previous year, suggesting a significant expansion in active production volumes or the commencement of larger-scale, long-term projects.

Raw Materials

Raw materials exhibited a more stable but generally positive growth pattern. After remaining relatively flat between 2015 and 2017, values increased from 1,357 million US dollars in 2017 to 1,733 million US dollars by 2019. This indicates a gradual scaling of input procurement to support the expanded production levels reflected in the work in process figures.

Finished Goods

Finished goods maintained a negligible proportion of the total inventory throughout the five-year period, fluctuating between 28 million and 51 million US dollars. The consistently low balance of finished goods relative to work in process suggests a business model based on build-to-order contracts, where products are transferred to customers shortly after completion.

Pre-owned Aircraft

Inventory for pre-owned aircraft showed notable volatility. Values declined from 73 million US dollars in 2015 to 22 million US dollars in 2016, followed by a steady climb to 124 million US dollars by the end of 2019. This trend suggests fluctuations in the acquisition and sale cycles of used assets.

The compositional shift in inventory highlights a growing concentration in work in process, which moved from representing 56.1% of total inventories in 2015 to 70.1% by 2019. This shift underscores an increasing amount of capital tied up in the production phase of the operating cycle.