Stock Analysis on Net

General Dynamics Corp. (NYSE:GD)

This company has been moved to the archive! The financial data has not been updated since October 28, 2020.

Analysis of Operating Leases

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Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

General Dynamics Corp., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Total undiscounted future operating lease payments 1,689 1,359 1,187 1,037
Discount rate1 2.94% 2.62% 2.28% 2.36%
 
Total present value of future operating lease payments 1,465 1,206 1,070 946

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).

1 Weighted-average interest rate for General Dynamics Corp. debt

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.94%
2019 297 2019 297 289
2020 234 2020 234 221
2021 196 2021 196 180
2022 154 2022 154 137
2023 110 2023 110 95
2024 and thereafter 698 2024 110 92
2025 110 90
2026 110 87
2027 110 85
2028 110 82
2029 110 80
2030 38 27
Total: 1,689 1,689 1,465

Based on: 10-K (reporting date: 2018-12-31).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.62%
2018 258 2018 258 251
2019 215 2019 215 204
2020 148 2020 148 137
2021 118 2021 118 106
2022 94 2022 94 83
2023 and thereafter 526 2023 94 80
2024 94 78
2025 94 76
2026 94 74
2027 94 73
2028 56 42
Total: 1,359 1,359 1,206

Based on: 10-K (reporting date: 2017-12-31).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.28%
2017 241 2017 241 236
2018 195 2018 195 186
2019 144 2019 144 135
2020 92 2020 92 84
2021 72 2021 72 64
2022 and thereafter 443 2022 72 63
2023 72 61
2024 72 60
2025 72 59
2026 72 57
2027 72 56
2028 11 8
Total: 1,187 1,187 1,070

Based on: 10-K (reporting date: 2016-12-31).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.36%
2016 220 2016 220 215
2017 179 2017 179 171
2018 136 2018 136 127
2019 90 2019 90 82
2020 90 2020 90 80
2021 and thereafter 322 2021 90 78
2022 90 76
2023 90 75
2024 52 42
Total: 1,037 1,037 946

Based on: 10-K (reporting date: 2015-12-31).


Adjustments to Financial Statements for Operating Leases

General Dynamics Corp., adjustments to financial statements

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 48,841 45,408 35,046 32,872 31,997
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 1,465 1,206 1,070 946
Total assets (adjusted) 48,841 46,873 36,252 33,942 32,943
Adjustment to Total Debt
Total debt (as reported) 11,930 12,417 3,982 3,888 3,399
Add: Operating lease liability (before adoption of FASB Topic 842)2 1,465 1,206 1,070 946
Add: Current operating lease liabilities 252
Add: Noncurrent operating lease liabilities 1,251
Total debt (adjusted) 13,433 13,882 5,188 4,958 4,345

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).

1, 2 Equal to total present value of future operating lease payments.


General Dynamics Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

General Dynamics Corp., adjusted financial ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Total Asset Turnover1
Reported total asset turnover 0.81 0.80 0.88 0.95 0.98
Adjusted total asset turnover 0.81 0.77 0.85 0.92 0.96
Debt to Equity2
Reported debt to equity 0.88 1.06 0.35 0.35 0.32
Adjusted debt to equity 0.99 1.18 0.45 0.45 0.40
Return on Assets3 (ROA)
Reported ROA 7.13% 7.37% 8.31% 8.99% 9.27%
Adjusted ROA 7.13% 7.14% 8.03% 8.71% 9.00%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Dynamics Corp. adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. General Dynamics Corp. adjusted debt to equity ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. General Dynamics Corp. adjusted ROA deteriorated from 2017 to 2018 and from 2018 to 2019.

General Dynamics Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenue 39,350 36,193 30,973 31,353 31,469
Total assets 48,841 45,408 35,046 32,872 31,997
Activity Ratio
Total asset turnover1 0.81 0.80 0.88 0.95 0.98
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenue 39,350 36,193 30,973 31,353 31,469
Adjusted total assets 48,841 46,873 36,252 33,942 32,943
Activity Ratio
Adjusted total asset turnover2 0.81 0.77 0.85 0.92 0.96

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).

2019 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 39,350 ÷ 48,841 = 0.81

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 39,350 ÷ 48,841 = 0.81

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Dynamics Corp. adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Debt to Equity

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total debt 11,930 12,417 3,982 3,888 3,399
Shareholders’ equity 13,577 11,732 11,435 10,976 10,738
Solvency Ratio
Debt to equity1 0.88 1.06 0.35 0.35 0.32
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 13,433 13,882 5,188 4,958 4,345
Shareholders’ equity 13,577 11,732 11,435 10,976 10,738
Solvency Ratio
Adjusted debt to equity2 0.99 1.18 0.45 0.45 0.40

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).

2019 Calculations

1 Debt to equity = Total debt ÷ Shareholders’ equity
= 11,930 ÷ 13,577 = 0.88

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 13,433 ÷ 13,577 = 0.99

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. General Dynamics Corp. adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Return on Assets (ROA)

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings 3,484 3,345 2,912 2,955 2,965
Total assets 48,841 45,408 35,046 32,872 31,997
Profitability Ratio
ROA1 7.13% 7.37% 8.31% 8.99% 9.27%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net earnings 3,484 3,345 2,912 2,955 2,965
Adjusted total assets 48,841 46,873 36,252 33,942 32,943
Profitability Ratio
Adjusted ROA2 7.13% 7.14% 8.03% 8.71% 9.00%

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).

2019 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 3,484 ÷ 48,841 = 7.13%

2 Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 3,484 ÷ 48,841 = 7.13%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. General Dynamics Corp. adjusted ROA deteriorated from 2017 to 2018 and from 2018 to 2019.