Stock Analysis on Net
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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

General Dynamics Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Short-term debt and current portion of long-term debt 5.98 2.14 0.01 2.74 1.57
Accounts payable 6.47 7.00 9.15 7.72 6.14
Customer advances and deposits 14.64 16.01 19.95 15.02 17.73
Salaries and wages 1.93 2.10 2.24 2.11 2.03
Workers’ compensation 0.63 0.54 0.91 1.03 1.15
Retirement benefits 0.61 0.60 0.84 0.92 0.95
Current operating lease liabilities 0.52 0.00 0.00 0.00 0.00
Fair value of cash flow hedges 0.07 0.31 0.51 1.58 2.44
Deferred income taxes 0.00 0.00 0.00 3.83 2.59
Other 3.57 3.76 3.76 4.12 4.30
Other current liabilities 7.31% 7.30% 8.27% 13.60% 13.46%
Current liabilities 34.40% 32.46% 37.38% 39.08% 38.89%
Long-term debt, excluding current portion 18.45 25.20 11.36 9.09 9.06
Retirement benefits 10.59 9.74 12.58 13.36 13.29
Noncurrent operating lease liabilities 2.56 0.00 0.00 0.00 0.00
Customer deposits on commercial contracts 1.45 1.60 2.32 1.27 1.58
Deferred income taxes 0.98 1.27 0.70 0.22 0.23
Other 3.77 3.89 3.04 3.59 3.39
Other liabilities 19.35% 16.50% 18.64% 18.44% 18.49%
Noncurrent liabilities 37.80% 41.70% 29.99% 27.53% 27.55%
Total liabilities 72.20% 74.16% 67.37% 66.61% 66.44%
Common stock 0.99 1.06 1.38 1.47 1.51
Surplus 6.22 6.49 8.19 8.58 8.53
Retained earnings 64.77 64.58 75.46 76.74 72.52
Treasury stock -35.54 -37.98 -44.35 -43.06 -38.73
Accumulated other comprehensive loss -8.64 -8.32 -8.05 -10.33 -10.27
Shareholders’ equity 27.80% 25.84% 32.63% 33.39% 33.56%
Total liabilities and shareholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The capital structure of the organization experienced a notable shift toward increased leverage between 2015 and 2019. Total liabilities remained relatively stable at approximately 66% to 67% of total liabilities and shareholders' equity from 2015 through 2017, before increasing significantly to 74.16% in 2018 and settling at 72.20% in 2019. Consequently, shareholders' equity declined from a range of 32% to 33% in the early period to 27.80% by the end of 2019.

Long-Term Debt and Leverage
A significant increase in long-term debt, excluding the current portion, is observed in 2018, where it rose to 25.20% of total liabilities and shareholders' equity, compared to a range of 9.06% to 11.36% between 2015 and 2017. Although this figure decreased to 18.45% in 2019, it remained substantially higher than pre-2018 levels, contributing to the overall increase in noncurrent liabilities, which peaked at 41.70% in 2018.
Current Liability Trends
Current liabilities showed a general downward trend, moving from 38.89% in 2015 to 34.40% in 2019. A primary driver of current liabilities is customer advances and deposits, which consistently represented a substantial portion of the balance sheet, peaking at 19.95% in 2017 before declining to 14.64% by 2019. Short-term debt remained minimal for most of the period but saw a sharp increase to 5.98% in 2019.
Equity Component Analysis
Retained earnings constituted the largest single component of the balance sheet from 2015 to 2017, peaking at 76.74% in 2016, before dropping to approximately 64% in 2018 and 2019. This decline is mirrored by a significant negative balance in treasury stock, which reached its maximum negative impact of -44.35% in 2017, indicating aggressive share repurchase activity. Accumulated other comprehensive loss remained a consistent negative factor, fluctuating between -8.05% and -10.33% throughout the five-year period.
Other Liability Observations
Retirement benefits in the noncurrent category saw a gradual decline from 13.29% in 2015 to 10.59% in 2019. Additionally, the emergence of operating lease liabilities in 2019, totaling 3.08% when combining current and noncurrent portions, indicates a change in accounting standards or leasing activity during that fiscal year.

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