Stock Analysis on Net
Stock Analysis on Net
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General Dynamics Corp. (NYSE:GD)

This company was transferred to the archive: financial data is no longer updated!

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

General Dynamics Corp., balance sheet: property, plant and equipment

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Machinery and equipment 5,441  5,534  4,736  4,582  4,394 
Buildings and improvements 3,232  3,011  2,837  2,745  2,666 
Land and improvements 400  386  357  333  328 
Construction in process 688  472  307  269  288 
PP&E, gross 9,761  9,403  8,237  7,929  7,676 
Accumulated depreciation (5,286) (5,055) (4,720) (4,462) (4,210)
PP&E, net 4,475  4,348  3,517  3,467  3,466 

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

Item Description The company
PP&E, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. General Dynamics Corp.’s pP&E, gross increased from 2017 to 2018 and from 2018 to 2019.
PP&E, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. General Dynamics Corp.’s pP&E, net increased from 2017 to 2018 and from 2018 to 2019.

Asset Age Ratios (Summary)

General Dynamics Corp., asset age ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Average age ratio 56.47% 56.06% 59.90% 58.74% 57.29%
Estimated total useful life (years) 20 18 22 21 20
Estimated age, time elapsed since purchase (years) 11 10 13 12 12
Estimated remaining life (years) 9 8 9 9 9

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. General Dynamics Corp.’s average age ratio of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. General Dynamics Corp.’s estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. General Dynamics Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Estimated remaining life General Dynamics Corp.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Average Age

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 5,286  5,055  4,720  4,462  4,210 
PP&E, gross 9,761  9,403  8,237  7,929  7,676 
Land and improvements 400  386  357  333  328 
Asset Age Ratio
Average age1 56.47% 56.06% 59.90% 58.74% 57.29%

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

2019 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (PP&E, gross – Land and improvements)
= 100 × 5,286 ÷ (9,761 – 400) = 56.47%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. General Dynamics Corp.’s average age ratio of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
PP&E, gross 9,761  9,403  8,237  7,929  7,676 
Land and improvements 400  386  357  333  328 
Depreciation of property, plant and equipment 466  493  362  366  366 
Asset Age Ratio (Years)
Estimated total useful life1 20 18 22 21 20

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

2019 Calculations

1 Estimated total useful life = (PP&E, gross – Land and improvements) ÷ Depreciation of property, plant and equipment
= (9,761 – 400) ÷ 466 = 20

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. General Dynamics Corp.’s estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Estimated Age, Time Elapsed since Purchase

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 5,286  5,055  4,720  4,462  4,210 
Depreciation of property, plant and equipment 466  493  362  366  366 
Asset Age Ratio (Years)
Time elapsed since purchase1 11 10 13 12 12

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

2019 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation of property, plant and equipment
= 5,286 ÷ 466 = 11

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. General Dynamics Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
PP&E, net 4,475  4,348  3,517  3,467  3,466 
Land and improvements 400  386  357  333  328 
Depreciation of property, plant and equipment 466  493  362  366  366 
Asset Age Ratio (Years)
Estimated remaining life1 9 8 9 9 9

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

2019 Calculations

1 Estimated remaining life = (PP&E, net – Land and improvements) ÷ Depreciation of property, plant and equipment
= (4,475 – 400) ÷ 466 = 9

Asset age ratio Description The company
Estimated remaining life General Dynamics Corp.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.