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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

General Dynamics Corp., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2019 25.66% = 7.13% × 3.60
Dec 31, 2018 28.51% = 7.37% × 3.87
Dec 31, 2017 25.47% = 8.31% × 3.06
Dec 31, 2016 26.92% = 8.99% × 2.99
Dec 31, 2015 27.61% = 9.27% × 2.98

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).

Three-Component Disaggregation of ROE

General Dynamics Corp., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2019 25.66% = 8.85% × 0.81 × 3.60
Dec 31, 2018 28.51% = 9.24% × 0.80 × 3.87
Dec 31, 2017 25.47% = 9.40% × 0.88 × 3.06
Dec 31, 2016 26.92% = 9.42% × 0.95 × 2.99
Dec 31, 2015 27.61% = 9.42% × 0.98 × 2.98

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).

Five-Component Disaggregation of ROE

General Dynamics Corp., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2019 25.66% = 0.83 × 0.90 × 11.88% × 0.81 × 3.60
Dec 31, 2018 28.51% = 0.82 × 0.92 × 12.28% × 0.80 × 3.87
Dec 31, 2017 25.47% = 0.71 × 0.97 × 13.54% × 0.88 × 3.06
Dec 31, 2016 26.92% = 0.72 × 0.98 × 13.47% × 0.95 × 2.99
Dec 31, 2015 27.61% = 0.72 × 0.98 × 13.35% × 0.98 × 2.98

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).

Two-Component Disaggregation of ROA

General Dynamics Corp., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2019 7.13% = 8.85% × 0.81
Dec 31, 2018 7.37% = 9.24% × 0.80
Dec 31, 2017 8.31% = 9.40% × 0.88
Dec 31, 2016 8.99% = 9.42% × 0.95
Dec 31, 2015 9.27% = 9.42% × 0.98

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).

Four-Component Disaggregation of ROA

General Dynamics Corp., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2019 7.13% = 0.83 × 0.90 × 11.88% × 0.81
Dec 31, 2018 7.37% = 0.82 × 0.92 × 12.28% × 0.80
Dec 31, 2017 8.31% = 0.71 × 0.97 × 13.54% × 0.88
Dec 31, 2016 8.99% = 0.72 × 0.98 × 13.47% × 0.95
Dec 31, 2015 9.27% = 0.72 × 0.98 × 13.35% × 0.98

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).

Disaggregation of Net Profit Margin

General Dynamics Corp., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2019 8.85% = 0.83 × 0.90 × 11.88%
Dec 31, 2018 9.24% = 0.82 × 0.92 × 12.28%
Dec 31, 2017 9.40% = 0.71 × 0.97 × 13.54%
Dec 31, 2016 9.42% = 0.72 × 0.98 × 13.47%
Dec 31, 2015 9.42% = 0.72 × 0.98 × 13.35%

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).