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).

Current liabilities trends
The proportion of current liabilities to total liabilities and equity showed a general decline from 38.89% in 2015 to a low of 32.46% in 2018, followed by a slight increase to 34.4% in 2019. Within this category, short-term debt and the current portion of long-term debt fluctuated, initially rising from 1.57% in 2015 to 2.74% in 2016, dropping sharply to near zero in 2017, then rising again to 5.98% by 2019. Accounts payable increased steadily from 6.14% in 2015 to a peak of 9.15% in 2017, before declining subsequently. Customer advances and deposits exhibited a fluctuating pattern, peaking at 19.95% in 2017 and then decreasing to 14.64% by 2019. Other current liabilities decreased significantly from 13.46% in 2015 to around 7.3% in 2018 and 2019.
Noncurrent liabilities changes
Noncurrent liabilities increased markedly over the period, from 27.55% in 2015 to a high of 41.7% in 2018 before decreasing to 37.8% in 2019. Long-term debt excluding the current portion showed a notable increase, climbing from 9.06% in 2015 to 25.2% in 2018, then falling to 18.45% in 2019. Retirement benefits as a noncurrent liability decreased from 13.29% in 2015 to 9.74% in 2018 but rose slightly to 10.59% in 2019. New categories such as noncurrent operating lease liabilities appeared in 2019, comprising 2.56% of total liabilities and equity. Other noncurrent liabilities remained relatively stable, fluctuating slightly around 18% to 19%.
Equity composition and evolution
Shareholders’ equity as a percentage of total liabilities and equity decreased considerably from 33.56% in 2015 to a low of 25.84% in 2018 but saw a slight recovery to 27.8% in 2019. Retained earnings, the largest component of equity, increased initially from 72.52% in 2015 to 76.74% in 2016, then decreased notably to around 64.7% in the last two years. Treasury stock represented a significant negative component of equity, showing a decreasing negative impact from -38.73% in 2015 to -35.54% in 2019. Accumulated other comprehensive loss remained consistently negative over the period, around -8% to -10%. Common stock and surplus gradually decreased as a share of total capital.
Other financial elements
The fair value of cash flow hedges decreased sharply from 2.44% in 2015 to 0.07% in 2019, indicating a reduction in hedge accounting impacts. Deferred income taxes showed variable presence, with current deferred tax liabilities observed only in 2015 and 2016, whereas noncurrent deferred taxes increased from 0.23% to 1.27% in 2018 and slightly declined thereafter. The inclusion of operating lease liabilities beginning in 2019 suggests a possible accounting change or adoption of new lease standards. Other liabilities, aggregating smaller items, remained fairly stable throughout the period.
Overall capital structure observations
The total liabilities increased as a proportion of total capital, from 66.44% in 2015 to a peak of 74.16% in 2018, then declined slightly to 72.2% in 2019, reflecting a temporary shift toward higher leverage. This was paralleled by a reduction in the proportion of shareholders’ equity, indicating a modest shift in capital structure favoring liabilities over the five-year span. The trends point to strategic borrowing increases, particularly long-term debt, balanced partially by equity components, with a marked influence from treasury stock and retained earnings components within equity.