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
Quarterly Data

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 (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 27, 2020 21.64% = 6.34% × 3.42
Jun 28, 2020 23.50% = 6.50% × 3.62
Mar 29, 2020 26.10% = 6.41% × 4.07
Dec 31, 2019 25.66% = 7.13% × 3.60
Sep 29, 2019 24.96% = 6.91% × 3.61
Jun 30, 2019 25.71% = 6.89% × 3.73
Mar 31, 2019 26.90% = 6.93% × 3.88
Dec 31, 2018 28.51% = 7.37% × 3.87
Sep 30, 2018 24.08% = 6.54% × 3.68
Jul 1, 2018 24.89% = 6.33% × 3.93
Apr 1, 2018 25.04% = 7.92% × 3.16
Dec 31, 2017 25.47% = 8.31% × 3.06
Oct 1, 2017 26.57% = 8.80% × 3.02
Jul 2, 2017 27.32% = 8.85% × 3.09
Apr 2, 2017 28.36% = 9.04% × 3.14
Dec 31, 2016 26.92% = 8.99% × 2.99
Oct 2, 2016 25.82% = 8.94% × 2.89
Jul 3, 2016 27.03% = 9.36% × 2.89
Apr 3, 2016 28.03% = 9.36% × 3.00
Dec 31, 2015 27.61% = 9.27% × 2.98
Oct 4, 2015 — = — × 3.07
Jul 5, 2015 — = — × 2.98
Apr 5, 2015 — = — × 2.98

Based on: 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-10-04), 10-Q (reporting date: 2015-07-05), 10-Q (reporting date: 2015-04-05).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

General Dynamics Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 27, 2020 21.64% = 8.33% × 0.76 × 3.42
Jun 28, 2020 23.50% = 8.47% × 0.77 × 3.62
Mar 29, 2020 26.10% = 8.87% × 0.72 × 4.07
Dec 31, 2019 25.66% = 8.85% × 0.81 × 3.60
Sep 29, 2019 24.96% = 8.66% × 0.80 × 3.61
Jun 30, 2019 25.71% = 8.65% × 0.80 × 3.73
Mar 31, 2019 26.90% = 8.68% × 0.80 × 3.88
Dec 31, 2018 28.51% = 9.24% × 0.80 × 3.87
Sep 30, 2018 24.08% = 9.01% × 0.73 × 3.68
Jul 1, 2018 24.89% = 9.16% × 0.69 × 3.93
Apr 1, 2018 25.04% = 9.49% × 0.83 × 3.16
Dec 31, 2017 25.47% = 9.40% × 0.88 × 3.06
Oct 1, 2017 26.57% = 9.94% × 0.89 × 3.02
Jul 2, 2017 27.32% = 9.63% × 0.92 × 3.09
Apr 2, 2017 28.36% = 9.66% × 0.94 × 3.14
Dec 31, 2016 26.92% = 9.42% × 0.95 × 2.99
Oct 2, 2016 25.82% = 9.45% × 0.95 × 2.89
Jul 3, 2016 27.03% = 9.53% × 0.98 × 2.89
Apr 3, 2016 28.03% = 9.44% × 0.99 × 3.00
Dec 31, 2015 27.61% = 9.42% × 0.98 × 2.98
Oct 4, 2015 — = — × — × 3.07
Jul 5, 2015 — = — × — × 2.98
Apr 5, 2015 — = — × — × 2.98

Based on: 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-10-04), 10-Q (reporting date: 2015-07-05), 10-Q (reporting date: 2015-04-05).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

General Dynamics Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 27, 2020 6.34% = 8.33% × 0.76
Jun 28, 2020 6.50% = 8.47% × 0.77
Mar 29, 2020 6.41% = 8.87% × 0.72
Dec 31, 2019 7.13% = 8.85% × 0.81
Sep 29, 2019 6.91% = 8.66% × 0.80
Jun 30, 2019 6.89% = 8.65% × 0.80
Mar 31, 2019 6.93% = 8.68% × 0.80
Dec 31, 2018 7.37% = 9.24% × 0.80
Sep 30, 2018 6.54% = 9.01% × 0.73
Jul 1, 2018 6.33% = 9.16% × 0.69
Apr 1, 2018 7.92% = 9.49% × 0.83
Dec 31, 2017 8.31% = 9.40% × 0.88
Oct 1, 2017 8.80% = 9.94% × 0.89
Jul 2, 2017 8.85% = 9.63% × 0.92
Apr 2, 2017 9.04% = 9.66% × 0.94
Dec 31, 2016 8.99% = 9.42% × 0.95
Oct 2, 2016 8.94% = 9.45% × 0.95
Jul 3, 2016 9.36% = 9.53% × 0.98
Apr 3, 2016 9.36% = 9.44% × 0.99
Dec 31, 2015 9.27% = 9.42% × 0.98
Oct 4, 2015 — = — × —
Jul 5, 2015 — = — × —
Apr 5, 2015 — = — × —

Based on: 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-10-04), 10-Q (reporting date: 2015-07-05), 10-Q (reporting date: 2015-04-05).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2020 is the decrease in profitability measured by net profit margin ratio.