Stock Analysis on Net
Stock Analysis on Net

General Dynamics Corp. (NYSE:GD)

$22.49

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

Common-Size Income Statement
Quarterly Data

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General Dynamics Corp., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 31, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016 Dec 31, 2015 Oct 4, 2015 Jul 5, 2015 Apr 5, 2015
Products
Services
Revenue
Products
Services
Cost of revenue
Gross profit
General and administrative (G&A)
Operating earnings
Other, net
Interest, net
Earnings from continuing operations before income tax
Provision for income tax, net
Earnings from continuing operations
Discontinued operations, net of tax
Net earnings

Based on: 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-10-04), 10-Q (reporting date: 2015-07-05), 10-Q (reporting date: 2015-04-05).

Revenue Composition
The revenue consistently splits between products and services, with products accounting for roughly 55% to 65% and services for 35% to 48% over the periods. Notably, there was a decline in the products' share from around 63-65% in 2015-2016 to a low of approximately 51.75% in mid-2018, before recovering somewhat by 2020. Conversely, the services proportion increased significantly to nearly 48% in mid-2018, indicating a temporary shift towards service revenue, then dropped back to the low 40% range more recently.
Cost of Revenue and Gross Profit
Overall cost of revenue remained relatively stable around 80% of revenue, with some fluctuation between 79.5% and 84.7%, reflecting consistent cost structures. More specifically, product costs comprised about 45-51% of revenue, while service costs ranged around 29-42%. Gross profit margins hovered predominantly near 18-20%, with a notable dip towards 15-17% in late 2019 through mid-2020, suggesting some margin pressure during that period.
Operating Expenses and Earnings
General and administrative expenses remained moderate, generally between 5.4% and 7.1% of revenue, with a slight downward trend in recent periods, indicative of expense control efforts. Operating earnings fluctuated between roughly 9% and 14%, showing resilience despite gross margin volatility, although values declined gradually from peak levels in 2015-2016 to lower points in 2019-2020.
Other Income and Interest Expenses
Other net income items were minor in scale and inconsistent, occasionally negative, but without any clear trend. Interest expense, while a small fraction of revenue (generally under 1%), showed a marked increase around 2018-2020, rising from about 0.3% to as high as 1.42% of revenue, indicating increased leverage or borrowing costs during this period.
Earnings Before and After Taxes
Earnings before income tax were mostly stable at circa 10-14% of revenue but experienced a noticeable decrease in 2018-2020. The provision for income tax as a percentage of revenue dropped substantially from around 3-4% in earlier years to nearly 1% or less in the latter periods, contributing to improved net earnings margins. Earnings from continuing operations followed a similar downward trend after peaking near 10%, demonstrating the impact of operational and market conditions.
Net Earnings
Net earnings as a percentage of revenue generally ranged between approximately 6.75% and 10.6%, with the highest margins observed around 2015-2017. A decline is evident from late 2017 onwards, reaching the lower end of this range in 2019-2020. This pattern aligns with decreasing operating earnings and higher interest expenses, indicating tighter profitability amidst cost challenges.