Return on Equity (ROE)
since 2005
Calculation
General Dynamics Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings (loss)1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 25.66% | = | 100 | × | 3,484) | ÷ | 13,577) |
| Dec 31, 2018 | 28.51% | = | 100 | × | 3,345) | ÷ | 11,732) |
| Dec 31, 2017 | 25.47% | = | 100 | × | 2,912) | ÷ | 11,435) |
| Dec 31, 2016 | 26.92% | = | 100 | × | 2,955) | ÷ | 10,976) |
| Dec 31, 2015 | 27.61% | = | 100 | × | 2,965) | ÷ | 10,738) |
| Dec 31, 2014 | 21.41% | = | 100 | × | 2,533) | ÷ | 11,829) |
| Dec 31, 2013 | 16.25% | = | 100 | × | 2,357) | ÷ | 14,501) |
| Dec 31, 2012 | -2.91% | = | 100 | × | (332) | ÷ | 11,390) |
| Dec 31, 2011 | 19.09% | = | 100 | × | 2,526) | ÷ | 13,232) |
| Dec 31, 2010 | 19.71% | = | 100 | × | 2,624) | ÷ | 13,316) |
| Dec 31, 2009 | 19.27% | = | 100 | × | 2,394) | ÷ | 12,423) |
| Dec 31, 2008 | 24.46% | = | 100 | × | 2,459) | ÷ | 10,053) |
| Dec 31, 2007 | 17.61% | = | 100 | × | 2,072) | ÷ | 11,768) |
| Dec 31, 2006 | 18.89% | = | 100 | × | 1,856) | ÷ | 9,827) |
| Dec 31, 2005 | 17.94% | = | 100 | × | 1,461) | ÷ | 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 performance from 2005 to 2019 is characterized by a general upward trajectory in both net earnings and return on equity, interrupted by a single period of significant volatility in 2012.
- Long-term Earnings and Equity Growth
- Net earnings increased from US$ 1,461 million in 2005 to US$ 3,484 million by 2019. Concurrently, shareholders' equity grew from US$ 8,145 million to US$ 13,577 million. This indicates a sustained expansion of the company's profitability and capital base over the fifteen-year period.
- Return on Equity Trends
- Between 2005 and 2011, return on equity remained relatively stable, fluctuating between a low of 17.61% and a high of 24.46%. Following a sharp decline in 2012, a period of accelerated efficiency was observed from 2014 to 2019, where the ratio consistently exceeded 21%, reaching a peak of 28.51% in 2018.
- Analysis of the 2012 Variance
- The fiscal year ending December 31, 2012, constitutes a notable anomaly. Net earnings shifted to a loss of US$ 332 million, which caused the return on equity to drop to -2.91%. This downturn was temporary, as performance returned to positive territory in 2013 with an ROE of 16.25%.
- Capital Efficiency and Profitability
- A comparison between the early period (2005-2011) and the later period (2014-2019) reveals an improvement in capital efficiency. While early ROE figures typically hovered around 19%, the latter period demonstrates a higher sustained average, suggesting a more effective utilization of shareholders' equity to generate net income.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
General Dynamics Corp., ROE, 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 | 25.66% | — | 41.77% | 13.75% | -17.58% | 33.22% | 199.23% | 13.25% |
| Dec 31, 2018 | 28.51% | 3,085.55% | 43.79% | 13.32% | -72.16% | 37.21% | 361.98% | 13.70% |
| Dec 31, 2017 | 25.47% | 2,309.01% | 5.50% | 17.30% | -9.00% | 9.58% | — | 15.37% |
| Dec 31, 2016 | 26.92% | 599.14% | -0.51% | 12.90% | 11.65% | 24.83% | 350.89% | 18.33% |
| Dec 31, 2015 | 27.61% | 81.70% | 14.19% | 13.03% | -6.23% | 26.08% | 116.40% | 27.81% |
| Dec 31, 2014 | 21.41% | 62.85% | 22.06% | 11.36% | 11.89% | 24.01% | 106.29% | 19.93% |
| Dec 31, 2013 | 16.25% | 30.82% | 18.21% | 11.08% | 10.00% | 22.47% | 60.61% | 17.95% |
| Dec 31, 2012 | -2.91% | 66.47% | 32.40% | 8.07% | 11.09% | 22.55% | 7,038.46% | 19.80% |
| Dec 31, 2011 | 19.09% | 114.31% | 38.25% | 18.07% | 12.15% | 19.13% | 265.23% | 22.76% |
| Dec 31, 2010 | 19.71% | 119.56% | 24.94% | 12.62% | 9.79% | 18.96% | 78.91% | 20.45% |
| Dec 31, 2009 | 19.27% | 61.65% | 10.24% | 5.65% | 9.40% | 24.34% | 73.24% | 19.08% |
| Dec 31, 2008 | 24.46% | — | 58.44% | 16.75% | 16.63% | 38.85% | 112.29% | 29.46% |
| Dec 31, 2007 | 17.61% | 45.25% | 39.86% | 19.22% | 19.22% | 26.50% | 30.93% | 19.78% |
| Dec 31, 2006 | 18.89% | 46.74% | 51.57% | 23.14% | 18.55% | 21.43% | 36.74% | 21.58% |
| Dec 31, 2005 | 17.94% | 23.26% | 33.85% | 21.31% | 14.95% | 14.71% | 23.20% | 18.06% |
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)
| General Dynamics Corp. | Capital Goods | |
|---|---|---|
| Dec 31, 2019 | 25.66% | 18.11% |
| Dec 31, 2018 | 28.51% | 11.28% |
| Dec 31, 2017 | 25.47% | 10.13% |
| Dec 31, 2016 | 26.92% | 20.08% |
| Dec 31, 2015 | 27.61% | 10.42% |
| Dec 31, 2014 | 21.41% | 18.16% |
| Dec 31, 2013 | 16.25% | 15.14% |
| Dec 31, 2012 | -2.91% | 17.58% |
| Dec 31, 2011 | 19.09% | 19.63% |
| Dec 31, 2010 | 19.71% | 15.88% |
| Dec 31, 2009 | 19.27% | 13.47% |
| Dec 31, 2008 | 24.46% | 24.97% |
| Dec 31, 2007 | 17.61% | 22.64% |
| Dec 31, 2006 | 18.89% | 22.16% |
| Dec 31, 2005 | 17.94% | 17.27% |
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)
| General Dynamics Corp. | Industrials | |
|---|---|---|
| Dec 31, 2019 | 25.66% | 14.56% |
| Dec 31, 2018 | 28.51% | 17.95% |
| Dec 31, 2017 | 25.47% | 18.24% |
| Dec 31, 2016 | 26.92% | 21.69% |
| Dec 31, 2015 | 27.61% | 16.11% |
| Dec 31, 2014 | 21.41% | 19.68% |
| Dec 31, 2013 | 16.25% | 16.40% |
| Dec 31, 2012 | -2.91% | 17.20% |
| Dec 31, 2011 | 19.09% | 20.10% |
| Dec 31, 2010 | 19.71% | 16.41% |
| Dec 31, 2009 | 19.27% | 12.84% |
| Dec 31, 2008 | 24.46% | 20.74% |
| Dec 31, 2007 | 17.61% | 20.36% |
| Dec 31, 2006 | 18.89% | 32.16% |
| Dec 31, 2005 | 17.94% | 7.80% |
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).