Stock Analysis on Net
Stock Analysis on Net

General Dynamics Corp. (NYSE:GD)

$22.49

This company has been moved to the archive! The financial data has not been updated since October 28, 2020.

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

General Dynamics Corp., ROE, long-term trends, calculation

Microsoft Excel
ROE = 100 × Net earnings (loss)1 ÷ Shareholders’ equity1
Dec 31, 2019 = 100 × ÷
Dec 31, 2018 = 100 × ÷
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Dec 31, 2015 = 100 × ÷
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Dec 31, 2013 = 100 × ÷
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Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

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

Net Earnings
Net earnings exhibited a general upward trend from 2005 to 2019, increasing from $1,461 million to $3,484 million. The company experienced consistent growth in earnings until 2011, peaking at $2,626 million in 2010. A significant deviation occurred in 2012, with a loss of $332 million, representing a notable anomaly in the otherwise positive earnings trajectory. Following 2012, net earnings resumed growth, reaching successive highs through to 2019, with substantial increases especially evident between 2018 and 2019.
Shareholders' Equity
Shareholders’ equity rose overall during the period, starting at $8,145 million in 2005 and reaching $13,577 million in 2019. The equity showed steady growth with occasional fluctuations; a dip was observed in 2008, aligning with the global financial crisis period, and in 2014 and 2015, where equity declined before stabilizing and increasing again post-2016. Growth in equity was most consistent between 2012 and 2019, reflecting gradual strengthening of the company’s financial base.
Return on Equity (ROE)
ROE displayed variability throughout the years. It remained relatively high and stable from 2005 to 2011, fluctuating mostly between 17% and 24%. There was a sharp drop in 2012 to -2.91%, closely corresponding to the net earnings loss in the same year, which indicates a significant adverse impact on profitability relative to equity. After this low point, ROE recovered strongly, reaching double-digit growth rates again from 2013 onwards, with values ranging from 16% up to nearly 29%, indicating improved efficiency in generating profit from shareholders’ equity in the latter years.
Overall Analysis
The financial performance shows resilience with long-term growth in net earnings and equity despite cyclical downturns and an exceptional loss in 2012. The company demonstrated the ability to recover quickly after setbacks. The combination of rising shareholders’ equity and robust ROE in the most recent years suggests effective capital management and improved profitability. The 2012 anomaly should be noted as an outlier requiring further investigation into its causes, but subsequent recovery reveals strong operational execution and financial stability.

Comparison to Competitors

General Dynamics Corp., ROE, 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.
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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., ROE, long-term trends, comparison to sector (capital goods)

Microsoft Excel
General Dynamics Corp. Capital Goods
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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., ROE, long-term trends, comparison to industry (industrials)

Microsoft Excel
General Dynamics Corp. Industrials
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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).