Debt to Equity
since 2005
Calculation
General Dynamics Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Short-term and long-term debt1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2019 | 0.88 | = | 11,930) | ÷ | 13,577) |
| Dec 31, 2018 | 1.06 | = | 12,417) | ÷ | 11,732) |
| Dec 31, 2017 | 0.35 | = | 3,982) | ÷ | 11,435) |
| Dec 31, 2016 | 0.35 | = | 3,888) | ÷ | 10,976) |
| Dec 31, 2015 | 0.32 | = | 3,399) | ÷ | 10,738) |
| Dec 31, 2014 | 0.33 | = | 3,911) | ÷ | 11,829) |
| Dec 31, 2013 | 0.27 | = | 3,909) | ÷ | 14,501) |
| Dec 31, 2012 | 0.34 | = | 3,909) | ÷ | 11,390) |
| Dec 31, 2011 | 0.30 | = | 3,930) | ÷ | 13,232) |
| Dec 31, 2010 | 0.24 | = | 3,203) | ÷ | 13,316) |
| Dec 31, 2009 | 0.31 | = | 3,864) | ÷ | 12,423) |
| Dec 31, 2008 | 0.40 | = | 4,024) | ÷ | 10,053) |
| Dec 31, 2007 | 0.24 | = | 2,791) | ÷ | 11,768) |
| Dec 31, 2006 | 0.28 | = | 2,781) | ÷ | 9,827) |
| Dec 31, 2005 | 0.40 | = | 3,291) | ÷ | 8,145) |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial trajectory from 2005 to 2019 reveals a distinct transition in capital structure, moving from a conservative, low-leverage approach to a significantly more leveraged position in the final years of the period.
- Period of Conservative Leverage (2005–2017)
- For the majority of the observed timeframe, a stable and low debt-to-equity profile was maintained. Between 2005 and 2017, the debt-to-equity ratio remained consistently below 0.40, reaching a low of 0.24 in 2007 and 2010. Total debt during this interval fluctuated within a narrow band, generally remaining between 2.7 billion and 4.0 billion US dollars, while shareholders' equity exhibited a general upward trend, growing from 8.1 billion US dollars in 2005 to 11.4 billion US dollars in 2017.
- Significant Capital Restructuring (2018)
- A substantial shift in the financing strategy occurred in 2018, characterized by a sharp increase in total debt. Liabilities rose from 3.98 billion US dollars in 2017 to 12.42 billion US dollars in 2018, representing a more than threefold increase. This surge in borrowing resulted in the debt-to-equity ratio spiking to 1.06, the highest level in the analyzed period, indicating that debt exceeded shareholders' equity for the first time since 2005.
- Recent Deleveraging Trends (2019)
- A moderate correction in the leverage ratio is observed in 2019. Total debt decreased slightly to 11.93 billion US dollars, while shareholders' equity increased to 13.58 billion US dollars. These combined movements led to a reduction in the debt-to-equity ratio to 0.88, suggesting a move toward stabilizing the balance sheet following the significant debt accumulation of the previous year.
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Comparison to Competitors
General Dynamics Corp., debt to equity, long-term trends, comparison to competitors
| General Dynamics Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 0.88 | — | 2.58 | 0.52 | 3.21 | 0.87 | 4.05 | 1.04 |
| Dec 31, 2018 | 1.06 | 40.85 | 2.60 | 0.47 | 3.55 | 0.89 | 9.04 | 1.18 |
| Dec 31, 2017 | 0.35 | 31.32 | 2.55 | 0.45 | 2.09 | 1.04 | — | 0.93 |
| Dec 31, 2016 | 0.35 | 12.18 | 2.80 | 0.56 | 1.80 | 0.81 | 9.45 | 0.87 |
| Dec 31, 2015 | 0.32 | 1.57 | 2.57 | 0.56 | 2.02 | 0.66 | 4.62 | 0.75 |
| Dec 31, 2014 | 0.33 | 1.05 | 2.35 | 0.57 | 2.85 | 0.49 | 1.81 | 0.63 |
| Dec 31, 2013 | 0.27 | 0.65 | 1.81 | 0.57 | 2.93 | 0.51 | 1.25 | 0.64 |
| Dec 31, 2012 | 0.34 | 1.77 | 2.29 | 0.72 | 3.37 | 0.58 | 157.90 | 0.90 |
| Dec 31, 2011 | 0.30 | 3.52 | 2.69 | 0.51 | 3.89 | 0.70 | 6.45 | 0.47 |
| Dec 31, 2010 | 0.24 | 4.49 | 2.63 | 0.47 | 4.02 | 0.62 | 1.35 | 0.48 |
| Dec 31, 2009 | 0.31 | 6.07 | 3.62 | 0.51 | 4.35 | 0.86 | 1.22 | 0.49 |
| Dec 31, 2008 | 0.40 | — | 5.84 | 0.68 | 5.00 | 1.17 | 1.24 | 0.72 |
| Dec 31, 2007 | 0.24 | 0.91 | 3.20 | 0.66 | 4.45 | 0.83 | 0.44 | 0.43 |
| Dec 31, 2006 | 0.28 | 2.01 | 3.98 | 0.63 | 3.85 | 0.52 | 0.64 | 0.46 |
| Dec 31, 2005 | 0.40 | 0.97 | 3.05 | 0.65 | 3.39 | 0.45 | 0.61 | 0.48 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
General Dynamics Corp., debt to equity, long-term trends, comparison to sector (capital goods)
| General Dynamics Corp. | Capital Goods | |
|---|---|---|
| Dec 31, 2019 | 0.88 | 2.08 |
| Dec 31, 2018 | 1.06 | 2.03 |
| Dec 31, 2017 | 0.35 | 1.74 |
| Dec 31, 2016 | 0.35 | 1.60 |
| Dec 31, 2015 | 0.32 | 1.64 |
| Dec 31, 2014 | 0.33 | 2.06 |
| Dec 31, 2013 | 0.27 | 2.00 |
| Dec 31, 2012 | 0.34 | 2.56 |
| Dec 31, 2011 | 0.30 | 3.04 |
| Dec 31, 2010 | 0.24 | 3.10 |
| Dec 31, 2009 | 0.31 | 3.46 |
| Dec 31, 2008 | 0.40 | 4.19 |
| Dec 31, 2007 | 0.24 | 3.21 |
| Dec 31, 2006 | 0.28 | 3.02 |
| Dec 31, 2005 | 0.40 | 2.53 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
General Dynamics Corp., debt to equity, long-term trends, comparison to industry (industrials)
| General Dynamics Corp. | Industrials | |
|---|---|---|
| Dec 31, 2019 | 0.88 | 1.82 |
| Dec 31, 2018 | 1.06 | 1.85 |
| Dec 31, 2017 | 0.35 | 1.65 |
| Dec 31, 2016 | 0.35 | 1.54 |
| Dec 31, 2015 | 0.32 | 1.51 |
| Dec 31, 2014 | 0.33 | 1.89 |
| Dec 31, 2013 | 0.27 | 1.79 |
| Dec 31, 2012 | 0.34 | 2.29 |
| Dec 31, 2011 | 0.30 | 2.60 |
| Dec 31, 2010 | 0.24 | 2.68 |
| Dec 31, 2009 | 0.31 | 3.01 |
| Dec 31, 2008 | 0.40 | 3.54 |
| Dec 31, 2007 | 0.24 | 2.73 |
| Dec 31, 2006 | 0.28 | 2.49 |
| Dec 31, 2005 | 0.40 | 2.42 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).