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.

Debt to Equity 
since 2005

Microsoft Excel

Calculation

General Dynamics Corp., debt to equity, long-term trends, calculation

Microsoft Excel
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

Debt Levels
The total debt exhibited fluctuation over the observed period. From 2005 to 2007, debt remained relatively stable around the range of $2.7 billion to $3.3 billion. A marked increase occurred in 2008, reaching over $4 billion, followed by a decline up to 2010, where the debt dropped below $3.3 billion. In the subsequent years up to 2013, debt hovered around $3.9 billion, then showed variability through 2016 and 2017. Notably, in 2018, debt spiked significantly to $12.4 billion and remained elevated in 2019 at approximately $11.9 billion, indicating a substantial increase in borrowing or liabilities during these two years.
Shareholders’ Equity
Shareholders' equity generally increased over the timeframe but with periods of volatility. Beginning at $8.1 billion in 2005, equity grew steadily to peak at over $13.3 billion in 2010. Thereafter, a decrease occurred in 2012 reaching approximately $11.4 billion, followed by recovery and growth with a peak around $14.5 billion in 2013. Equity then declined notably through 2014 and 2015, stabilizing near $11 billion in 2016 and 2017. Modest growth was observed in later years concluding at $13.6 billion in 2019, indicating overall positive equity growth though with intermittent decreases.
Debt to Equity Ratio
The debt to equity ratio showed varying trends across the period. Initially, it declined from 0.40 in 2005 to a low of 0.24 in 2007 and 2010, reflecting strengthening equity relative to debt. The ratio increased transiently in years such as 2008 and 2012, reaching values up to 0.40 and 0.35 respectively, indicating periods of higher leverage. A dramatic escalation occurred in 2018 to a ratio above 1.0, the highest in the observed period, signifying that total debt surpassed shareholders' equity significantly. In 2019, the ratio moderated slightly to 0.88, but remained appreciably elevated compared to historical levels, highlighting heightened financial leverage in these recent years.
Overall Insights
The data reveals a general trend of increasing financial leverage in the latter years, particularly marked by the significant debt increase and corresponding rise in debt to equity ratio in 2018 and 2019. Shareholders' equity has mostly trended upward, though with periods of decline that may reflect underlying market or operational pressures. The marked spike in debt in 2018 suggests potential strategic financing decisions or acquisitions. The elevated leverage ratio in the recent years warrants attention for potential impacts on financial risk and capital structure stability.

Comparison to Competitors

General Dynamics Corp., debt to equity, long-term trends, comparison to competitors

Microsoft Excel
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)

Microsoft Excel
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)

Microsoft Excel
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).