Operating Profit Margin
since 2005
Calculation
General Dynamics Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating earnings1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 11.81% | = | 100 | × | 4,648) | ÷ | 39,350) |
| Dec 31, 2018 | 12.31% | = | 100 | × | 4,457) | ÷ | 36,193) |
| Dec 31, 2017 | 13.49% | = | 100 | × | 4,177) | ÷ | 30,973) |
| Dec 31, 2016 | 13.74% | = | 100 | × | 4,309) | ÷ | 31,353) |
| Dec 31, 2015 | 13.28% | = | 100 | × | 4,178) | ÷ | 31,469) |
| Dec 31, 2014 | 12.61% | = | 100 | × | 3,889) | ÷ | 30,852) |
| Dec 31, 2013 | 11.80% | = | 100 | × | 3,685) | ÷ | 31,218) |
| Dec 31, 2012 | 2.64% | = | 100 | × | 833) | ÷ | 31,513) |
| Dec 31, 2011 | 11.71% | = | 100 | × | 3,826) | ÷ | 32,677) |
| Dec 31, 2010 | 12.15% | = | 100 | × | 3,945) | ÷ | 32,466) |
| Dec 31, 2009 | 11.49% | = | 100 | × | 3,675) | ÷ | 31,981) |
| Dec 31, 2008 | 124.68% | = | 100 | × | 3,653) | ÷ | 2,930) |
| Dec 31, 2007 | 11.43% | = | 100 | × | 3,113) | ÷ | 27,240) |
| Dec 31, 2006 | 10.91% | = | 100 | × | 2,625) | ÷ | 24,063) |
| Dec 31, 2005 | 10.34% | = | 100 | × | 2,197) | ÷ | 21,244) |
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 operating profit margin exhibits a general upward trajectory from 2005 through 2016, followed by a period of moderate contraction ending in 2019. While revenues expanded significantly over the period, growing from 21.24 billion US dollars to 39.35 billion US dollars, the efficiency of converting these revenues into operating profit experienced both steady growth and isolated volatility.
- Long-term Margin Expansion
- Between 2005 and 2016, the operating profit margin trended upward from 10.34% to a peak of 13.74%. This steady increase suggests a period of enhanced operational efficiency and successful cost management relative to revenue growth.
- Significant Data Volatility
- Two notable anomalies appear within the timeframe. In 2008, a spike to 124.68% is recorded, which corresponds with a reported revenue figure of 2,930 million US dollars that is significantly lower than the surrounding years. Additionally, in 2012, the margin declined sharply to 2.64%, resulting from a drop in operating earnings to 833 million US dollars despite revenues remaining consistent with historical averages.
- Recent Margin Compression
- Following the 2016 peak, a consistent downward trend is observed. The operating profit margin declined from 13.74% in 2016 to 11.81% by 2019. This contraction occurred even as revenues reached record highs of 36.19 billion US dollars in 2018 and 39.35 billion US dollars in 2019, indicating that operating expenses increased at a rate exceeding revenue growth during the final three years of the analyzed period.
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Comparison to Competitors
General Dynamics Corp., operating profit margin, long-term trends, comparison to competitors
| General Dynamics Corp. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Dec 31, 2019 | 11.81% | -2.58% | 16.33% | 14.29% | 11.64% |
| Dec 31, 2018 | 12.31% | 11.85% | 16.00% | 13.64% | 12.86% |
| Dec 31, 2017 | 13.49% | 11.01% | 10.32% | 11.60% | 14.49% |
| Dec 31, 2016 | 13.74% | 6.17% | 1.39% | 11.74% | 14.28% |
| Dec 31, 2015 | 13.28% | 7.74% | 7.38% | 11.78% | 13.00% |
| Dec 31, 2014 | 12.61% | 8.23% | 10.22% | 12.26% | 15.01% |
| Dec 31, 2013 | 11.80% | 7.58% | 10.68% | 9.93% | 14.70% |
| Dec 31, 2012 | 2.64% | 7.72% | 13.59% | 9.40% | 13.32% |
| Dec 31, 2011 | 11.71% | 8.50% | 12.46% | 8.56% | 13.92% |
| Dec 31, 2010 | 12.15% | 7.73% | 9.94% | 8.94% | 13.23% |
| Dec 31, 2009 | 11.49% | 3.07% | 1.95% | 9.88% | 12.33% |
| Dec 31, 2008 | 124.68% | 6.49% | 9.26% | 12.01% | 13.14% |
| Dec 31, 2007 | 11.43% | 8.78% | 11.73% | 10.81% | 13.08% |
| Dec 31, 2006 | 10.91% | 4.90% | 12.66% | 9.98% | 12.94% |
| Dec 31, 2005 | 10.34% | 5.13% | 11.13% | 8.02% | 12.26% |
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).