Return on Assets (ROA)
since 2005
Calculation
General Dynamics Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 7.13% | = | 100 | × | 3,484) | ÷ | 48,841) |
| Dec 31, 2018 | 7.37% | = | 100 | × | 3,345) | ÷ | 45,408) |
| Dec 31, 2017 | 8.31% | = | 100 | × | 2,912) | ÷ | 35,046) |
| Dec 31, 2016 | 8.99% | = | 100 | × | 2,955) | ÷ | 32,872) |
| Dec 31, 2015 | 9.27% | = | 100 | × | 2,965) | ÷ | 31,997) |
| Dec 31, 2014 | 7.16% | = | 100 | × | 2,533) | ÷ | 35,355) |
| Dec 31, 2013 | 6.65% | = | 100 | × | 2,357) | ÷ | 35,448) |
| Dec 31, 2012 | -0.97% | = | 100 | × | (332) | ÷ | 34,309) |
| Dec 31, 2011 | 7.24% | = | 100 | × | 2,526) | ÷ | 34,883) |
| Dec 31, 2010 | 8.06% | = | 100 | × | 2,624) | ÷ | 32,545) |
| Dec 31, 2009 | 7.70% | = | 100 | × | 2,394) | ÷ | 31,077) |
| Dec 31, 2008 | 8.67% | = | 100 | × | 2,459) | ÷ | 28,373) |
| Dec 31, 2007 | 8.05% | = | 100 | × | 2,072) | ÷ | 25,733) |
| Dec 31, 2006 | 8.29% | = | 100 | × | 1,856) | ÷ | 22,376) |
| Dec 31, 2005 | 7.46% | = | 100 | × | 1,461) | ÷ | 19,591) |
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 return on assets (ROA) for General Dynamics Corp. exhibited a period of relative stability punctuated by a significant outlier and a subsequent gradual decline in efficiency. Over the 14-year period from 2005 to 2019, the company expanded its asset base and net earnings, though the relationship between these two metrics shifted in the final years of the sequence.
- Earnings and Asset Growth Trends
- Net earnings demonstrated a consistent long-term upward trajectory, increasing from 1,461 million US$ in 2005 to 3,484 million US$ in 2019. This growth occurred alongside a substantial expansion of total assets, which rose from 19,591 million US$ to 48,841 million US$. A particularly sharp increase in total assets is observed between 2017 and 2018, where the asset base grew by approximately 10.36 billion US$ in a single fiscal year.
- ROA Volatility and the 2012 Anomaly
- Between 2005 and 2011, ROA remained stable, fluctuating within a narrow range between 7.24% and 8.67%. This stability was interrupted in 2012, when a net loss of 332 million US$ caused ROA to drop to -0.97%. The company achieved a rapid recovery in 2013, returning to a positive ROA of 6.65%, and reached a peak efficiency of 9.27% in 2015.
- Efficiency Trends 2015–2019
- Following the peak in 2015, a steady downward trend in ROA is observed, declining to 7.13% by 2019. While net earnings continued to grow during this period, the rate of increase in total assets outpaced the growth in earnings. This divergence suggests a decrease in the efficiency of asset utilization, as the expanding balance sheet did not yield proportional increases in net profitability during the latter part of the period.
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Comparison to Competitors
General Dynamics Corp., ROA, 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 | 7.13% | -0.48% | 7.77% | 6.74% | -1.87% | 10.47% | 13.11% | 3.96% |
| Dec 31, 2018 | 7.37% | 8.91% | 7.83% | 6.90% | -7.23% | 11.71% | 11.24% | 3.93% |
| Dec 31, 2017 | 8.31% | 8.88% | 0.98% | 9.15% | -1.53% | 2.79% | 4.30% | 4.70% |
| Dec 31, 2016 | 8.99% | 5.44% | -0.09% | 6.32% | 2.42% | 8.88% | 11.09% | 5.64% |
| Dec 31, 2015 | 9.27% | 5.48% | 2.68% | 6.38% | -1.24% | 9.67% | 7.34% | 8.70% |
| Dec 31, 2014 | 7.16% | 5.49% | 4.36% | 5.35% | 2.35% | 9.33% | 9.75% | 6.81% |
| Dec 31, 2013 | 6.65% | 4.95% | 4.46% | 5.24% | 1.99% | 8.64% | 8.24% | 6.31% |
| Dec 31, 2012 | -0.97% | 4.39% | 6.36% | 3.39% | 1.99% | 6.99% | 7.10% | 5.74% |
| Dec 31, 2011 | 7.24% | 5.02% | 6.05% | 7.55% | 1.97% | 5.19% | 7.00% | 8.10% |
| Dec 31, 2010 | 8.06% | 4.82% | 4.22% | 5.38% | 1.55% | 5.34% | 8.34% | 7.48% |
| Dec 31, 2009 | 7.70% | 2.11% | 1.49% | 2.35% | 1.41% | 5.98% | 8.61% | 6.87% |
| Dec 31, 2008 | 8.67% | 4.97% | 5.25% | 6.35% | 2.18% | 7.87% | 9.62% | 8.30% |
| Dec 31, 2007 | 8.05% | 6.91% | 6.31% | 7.40% | 2.79% | 7.23% | 10.49% | 7.74% |
| Dec 31, 2006 | 8.29% | 4.28% | 6.95% | 8.32% | 2.99% | 6.73% | 8.96% | 7.92% |
| Dec 31, 2005 | 7.46% | 4.28% | 6.06% | 7.88% | 2.43% | 5.12% | 6.58% | 6.68% |
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., ROA, long-term trends, comparison to sector (capital goods)
| General Dynamics Corp. | Capital Goods | |
|---|---|---|
| Dec 31, 2019 | 7.13% | 2.72% |
| Dec 31, 2018 | 7.37% | 1.74% |
| Dec 31, 2017 | 8.31% | 1.83% |
| Dec 31, 2016 | 8.99% | 4.09% |
| Dec 31, 2015 | 9.27% | 2.17% |
| Dec 31, 2014 | 7.16% | 3.87% |
| Dec 31, 2013 | 6.65% | 3.45% |
| Dec 31, 2012 | -0.97% | 3.30% |
| Dec 31, 2011 | 7.24% | 3.30% |
| Dec 31, 2010 | 8.06% | 2.70% |
| Dec 31, 2009 | 7.70% | 2.16% |
| Dec 31, 2008 | 8.67% | 3.33% |
| Dec 31, 2007 | 8.05% | 3.89% |
| Dec 31, 2006 | 8.29% | 3.91% |
| Dec 31, 2005 | 7.46% | 3.25% |
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., ROA, long-term trends, comparison to industry (industrials)
| General Dynamics Corp. | Industrials | |
|---|---|---|
| Dec 31, 2019 | 7.13% | 2.56% |
| Dec 31, 2018 | 7.37% | 3.16% |
| Dec 31, 2017 | 8.31% | 3.59% |
| Dec 31, 2016 | 8.99% | 4.55% |
| Dec 31, 2015 | 9.27% | 3.52% |
| Dec 31, 2014 | 7.16% | 4.31% |
| Dec 31, 2013 | 6.65% | 3.91% |
| Dec 31, 2012 | -0.97% | 3.38% |
| Dec 31, 2011 | 7.24% | 3.69% |
| Dec 31, 2010 | 8.06% | 3.03% |
| Dec 31, 2009 | 7.70% | 2.24% |
| Dec 31, 2008 | 8.67% | 3.10% |
| Dec 31, 2007 | 8.05% | 3.87% |
| Dec 31, 2006 | 8.29% | 6.41% |
| Dec 31, 2005 | 7.46% | 1.42% |
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).