Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

General Dynamics Corp. (NYSE:GD)

Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

General Dynamics Corp., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Return on Sales
Gross profit margin 17.94% 18.55% 19.98% 19.93% 19.48%
Operating profit margin 11.81% 12.31% 13.49% 13.74% 13.28%
Net profit margin 8.85% 9.24% 9.40% 9.42% 9.42%
Return on Investment
Return on equity (ROE) 25.66% 28.51% 25.47% 26.92% 27.61%
Return on assets (ROA) 7.13% 7.37% 8.31% 8.99% 9.27%

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. General Dynamics Corp.’s gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. General Dynamics Corp.’s operating profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. General Dynamics Corp.’s net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. General Dynamics Corp.’s ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
ROA A profitability ratio calculated as net income divided by total assets. General Dynamics Corp.’s ROA deteriorated from 2017 to 2018 and from 2018 to 2019.

Gross Profit Margin

General Dynamics Corp., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Gross profit 7,059  6,715  6,187  6,249  6,130 
Revenue 39,350  36,193  30,973  31,353  31,469 
Profitability Ratio
Gross profit margin1 17.94% 18.55% 19.98% 19.93% 19.48%
Benchmarks
Gross Profit Margin, Competitors2
Boeing Co. 5.83% 19.42% 18.55% 14.57% 14.59%
Lockheed Martin Corp. 13.99% 13.53% 10.87% 10.71% 11.27%
Northrop Grumman Corp. 21.45% 22.57% 23.07% 23.57% 23.98%
Raytheon Technologies Corp. 25.93% 24.84% 26.55% 27.57% 27.93%

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 7,059 ÷ 39,350 = 17.94%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. General Dynamics Corp.’s gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Operating Profit Margin

General Dynamics Corp., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Operating earnings 4,648  4,457  4,177  4,309  4,178 
Revenue 39,350  36,193  30,973  31,353  31,469 
Profitability Ratio
Operating profit margin1 11.81% 12.31% 13.49% 13.74% 13.28%
Benchmarks
Operating Profit Margin, Competitors2
Boeing Co. -2.58% 11.85% 11.01% 6.17% 7.74%
Lockheed Martin Corp. 14.29% 13.64% 11.60% 11.74% 11.78%
Northrop Grumman Corp. 11.73% 12.56% 12.79% 13.03% 13.07%
Raytheon Technologies Corp. 11.64% 12.86% 14.49% 14.28% 13.00%
Operating Profit Margin, Sector
Aerospace & Defense 8.43% 12.55% 12.39% 10.61% 10.83%
Operating Profit Margin, Industry
Industrials 13.15% 14.05% 13.85% 12.87% 13.62%

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Operating profit margin = 100 × Operating earnings ÷ Revenue
= 100 × 4,648 ÷ 39,350 = 11.81%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. General Dynamics Corp.’s operating profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Net Profit Margin

General Dynamics Corp., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net earnings 3,484  3,345  2,912  2,955  2,965 
Revenue 39,350  36,193  30,973  31,353  31,469 
Profitability Ratio
Net profit margin1 8.85% 9.24% 9.40% 9.42% 9.42%
Benchmarks
Net Profit Margin, Competitors2
Boeing Co. -0.83% 10.34% 8.78% 5.18% 5.39%
Lockheed Martin Corp. 10.42% 9.39% 3.92% 11.22% 7.81%
Northrop Grumman Corp. 6.64% 10.73% 7.81% 8.98% 8.46%
Raytheon Technologies Corp. 7.19% 7.92% 7.61% 8.83% 13.56%
Net Profit Margin, Sector
Aerospace & Defense 5.88% 9.51% 7.54% 8.01% 8.43%
Net Profit Margin, Industry
Industrials 7.36% 6.75% 8.05% 8.73% 7.03%

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Net profit margin = 100 × Net earnings ÷ Revenue
= 100 × 3,484 ÷ 39,350 = 8.85%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. General Dynamics Corp.’s net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Return on Equity (ROE)

General Dynamics Corp., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net earnings 3,484  3,345  2,912  2,955  2,965 
Shareholders’ equity 13,577  11,732  11,435  10,976  10,738 
Profitability Ratio
ROE1 25.66% 28.51% 25.47% 26.92% 27.61%
Benchmarks
ROE, Competitors2
Boeing Co. 3,085.55% 2,309.01% 599.14% 81.70%
Lockheed Martin Corp. 199.23% 361.98% 350.89% 116.40%
Northrop Grumman Corp. 25.49% 39.44% 28.59% 41.83% 36.04%
Raytheon Technologies Corp. 13.25% 13.70% 15.37% 18.33% 27.81%
ROE, Sector
Aerospace & Defense 28.74% 45.51% 41.20% 44.23% 40.23%
ROE, Industry
Industrials 25.43% 23.99% 23.83% 25.16% 17.65%

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 3,484 ÷ 13,577 = 25.66%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. General Dynamics Corp.’s ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Return on Assets (ROA)

General Dynamics Corp., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net earnings 3,484  3,345  2,912  2,955  2,965 
Total assets 48,841  45,408  35,046  32,872  31,997 
Profitability Ratio
ROA1 7.13% 7.37% 8.31% 8.99% 9.27%
Benchmarks
ROA, Competitors2
Boeing Co. -0.48% 8.91% 8.88% 5.44% 5.48%
Lockheed Martin Corp. 13.11% 11.24% 4.30% 11.09% 7.34%
Northrop Grumman Corp. 5.47% 8.58% 5.77% 8.59% 8.14%
Raytheon Technologies Corp. 3.96% 3.93% 4.70% 5.64% 8.70%
ROA, Sector
Aerospace & Defense 4.10% 7.21% 6.44% 7.14% 7.42%
ROA, Industry
Industrials 4.67% 4.52% 5.03% 5.46% 4.00%

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 3,484 ÷ 48,841 = 7.13%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. General Dynamics Corp.’s ROA deteriorated from 2017 to 2018 and from 2018 to 2019.