Microsoft Excel LibreOffice Calc

General Dynamics Corp. (GD)

Analysis of Short-term (Operating) Activity Ratios

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)

General Dynamics Corp., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Turnover Ratios
Inventory turnover 4.93 4.67 7.13 7.53 7.76
Receivables turnover 9.63 8.56 8.68 9.13 7.62
Payables turnover 9.27 7.73 9.89 12.90 12.14
Working capital turnover 10.49 5.92 12.05 14.80 8.44
Average No. Days
Average inventory processing period 74 78 51 48 47
Add: Average receivable collection period 38 43 42 40 48
Operating cycle 112 121 93 88 95
Less: Average payables payment period 39 47 37 28 30
Cash conversion cycle 73 74 56 60 65

Based on: 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), 10-K (filing date: 2015-02-09).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. General Dynamics Corp.’s inventory turnover ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Receivables turnover An activity ratio equal to revenue divided by receivables. General Dynamics Corp.’s receivables turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. General Dynamics Corp.’s payables turnover ratio declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. General Dynamics Corp.’s working capital turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. General Dynamics Corp.’s number of days of payables outstanding increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

General Dynamics Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Cost of revenue 29,478  24,786  25,104  25,339  24,979 
Inventories 5,977  5,303  3,523  3,366  3,221 
Short-term Activity Ratio
Inventory turnover1 4.93 4.67 7.13 7.53 7.76
Benchmarks
Inventory Turnover, Competitors2
Boeing Co. 1.30 1.71 1.87 1.74 1.64
Lockheed Martin Corp. 15.51 10.14 9.03 8.25 14.00
Northrop Grumman Corp. 35.63 25.45 22.95 22.16 24.77
Raytheon Co. 25.82 32.11 27.23 27.68 41.78
United Technologies Corp. 4.96 4.45 4.76 4.97 4.81
Inventory Turnover, Sector
Aerospace & Defense 3.01 3.50 3.67 3.44 3.52
Inventory Turnover, Industry
Industrials 4.19 4.43 4.49 4.28 4.56

Based on: 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), 10-K (filing date: 2015-02-09).

1 2018 Calculation
Inventory turnover = Cost of revenue ÷ Inventories
= 29,478 ÷ 5,977 = 4.93

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. General Dynamics Corp.’s inventory turnover ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Receivables Turnover

General Dynamics Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Revenue 36,193  30,973  31,353  31,469  30,852 
Accounts receivable 3,759  3,617  3,611  3,446  4,050 
Short-term Activity Ratio
Receivables turnover1 9.63 8.56 8.68 9.13 7.62
Benchmarks
Receivables Turnover, Competitors2
Boeing Co. 26.07 8.88 10.71 11.03 11.74
Lockheed Martin Corp. 22.00 5.93 5.76 5.72 7.75
Northrop Grumman Corp. 20.78 6.49 7.43 8.28 8.55
Raytheon Co. 16.42 19.15 19.76 19.89 21.99
United Technologies Corp. 4.66 4.75 4.99 5.27 5.75
Receivables Turnover, Sector
Aerospace & Defense 11.47 7.05 7.61 7.93 8.50
Receivables Turnover, Industry
Industrials 7.92 6.39 6.59 6.57 7.01

Based on: 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), 10-K (filing date: 2015-02-09).

1 2018 Calculation
Receivables turnover = Revenue ÷ Accounts receivable
= 36,193 ÷ 3,759 = 9.63

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. General Dynamics Corp.’s receivables turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Payables Turnover

General Dynamics Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Cost of revenue 29,478  24,786  25,104  25,339  24,979 
Accounts payable 3,179  3,207  2,538  1,964  2,057 
Short-term Activity Ratio
Payables turnover1 9.27 7.73 9.89 12.90 12.14
Benchmarks
Payables Turnover, Competitors2
Boeing Co. 6.30 6.23 7.21 7.59 7.19
Lockheed Martin Corp. 19.35 31.02 25.52 20.74 25.70
Northrop Grumman Corp. 10.68 11.95 12.05 13.95 14.08
Raytheon Co. 9.97 12.56 11.81 12.53 13.84
United Technologies Corp. 4.51 4.59 5.54 5.88 6.81
Payables Turnover, Sector
Aerospace & Defense 7.42 7.73 8.72 9.23 9.45
Payables Turnover, Industry
Industrials 6.66 6.77 7.32 7.68 7.41

Based on: 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), 10-K (filing date: 2015-02-09).

1 2018 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 29,478 ÷ 3,179 = 9.27

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. General Dynamics Corp.’s payables turnover ratio declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.

Working Capital Turnover

General Dynamics Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Current assets 18,189  18,328  15,447  14,571  17,407 
Less: Current liabilities 14,739  13,099  12,846  12,445  13,751 
Working capital 3,450  5,229  2,601  2,126  3,656 
 
Revenue 36,193  30,973  31,353  31,469  30,852 
Short-term Activity Ratio
Working capital turnover1 10.49 5.92 12.05 14.80 8.44
Benchmarks
Working Capital Turnover, Competitors2
Boeing Co. 16.21 10.50 7.66 5.39 8.20
Lockheed Martin Corp. 31.53 10.58 18.41 21.55 37.47
Northrop Grumman Corp. 21.40 2.75 19.99 26.83 10.46
Raytheon Co. 7.03 6.37 5.66 6.31 5.23
United Technologies Corp. 16.08 7.07 8.62 13.72 9.49
Working Capital Turnover, Sector
Aerospace & Defense 15.14 7.02 9.41 9.00 9.48
Working Capital Turnover, Industry
Industrials 7.46 5.08 5.16 5.68 2.66

Based on: 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), 10-K (filing date: 2015-02-09).

1 2018 Calculation
Working capital turnover = Revenue ÷ Working capital
= 36,193 ÷ 3,450 = 10.49

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. General Dynamics Corp.’s working capital turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Average Inventory Processing Period

General Dynamics Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Inventory turnover 4.93 4.67 7.13 7.53 7.76
Short-term Activity Ratio (no. days)
Average inventory processing period1 74 78 51 48 47
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boeing Co. 280 213 195 210 223
Lockheed Martin Corp. 24 36 40 44 26
Northrop Grumman Corp. 10 14 16 16 15
Raytheon Co. 14 11 13 13 9
United Technologies Corp. 74 82 77 73 76
Average Inventory Processing Period, Sector
Aerospace & Defense 121 104 99 106 104
Average Inventory Processing Period, Industry
Industrials 87 82 81 85 80

Based on: 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), 10-K (filing date: 2015-02-09).

1 2018 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.93 = 74

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

General Dynamics Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Receivables turnover 9.63 8.56 8.68 9.13 7.62
Short-term Activity Ratio (no. days)
Average receivable collection period1 38 43 42 40 48
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boeing Co. 14 41 34 33 31
Lockheed Martin Corp. 17 62 63 64 47
Northrop Grumman Corp. 18 56 49 44 43
Raytheon Co. 22 19 18 18 17
United Technologies Corp. 78 77 73 69 63
Average Receivable Collection Period, Sector
Aerospace & Defense 32 52 48 46 43
Average Receivable Collection Period, Industry
Industrials 46 57 55 56 52

Based on: 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), 10-K (filing date: 2015-02-09).

1 2018 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.63 = 38

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

General Dynamics Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Average inventory processing period 74 78 51 48 47
Average receivable collection period 38 43 42 40 48
Short-term Activity Ratio
Operating cycle1 112 121 93 88 95
Benchmarks
Operating Cycle, Competitors2
Boeing Co. 294 254 229 243 254
Lockheed Martin Corp. 41 98 103 108 73
Northrop Grumman Corp. 28 70 65 60 58
Raytheon Co. 36 30 31 31 26
United Technologies Corp. 152 159 150 142 139
Operating Cycle, Sector
Aerospace & Defense 153 156 147 152 147
Operating Cycle, Industry
Industrials 133 139 136 141 132

Based on: 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), 10-K (filing date: 2015-02-09).

1 2018 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 74 + 38 = 112

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

General Dynamics Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Payables turnover 9.27 7.73 9.89 12.90 12.14
Short-term Activity Ratio (no. days)
Average payables payment period1 39 47 37 28 30
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boeing Co. 58 59 51 48 51
Lockheed Martin Corp. 19 12 14 18 14
Northrop Grumman Corp. 34 31 30 26 26
Raytheon Co. 37 29 31 29 26
United Technologies Corp. 81 80 66 62 54
Average Payables Payment Period, Sector
Aerospace & Defense 49 47 42 40 39
Average Payables Payment Period, Industry
Industrials 55 54 50 48 49

Based on: 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), 10-K (filing date: 2015-02-09).

1 2018 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.27 = 39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. General Dynamics Corp.’s number of days of payables outstanding increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Cash Conversion Cycle

General Dynamics Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Average inventory processing period 74 78 51 48 47
Average receivable collection period 38 43 42 40 48
Average payables payment period 39 47 37 28 30
Short-term Activity Ratio
Cash conversion cycle1 73 74 56 60 65
Benchmarks
Cash Conversion Cycle, Competitors2
Boeing Co. 236 195 178 195 203
Lockheed Martin Corp. 22 86 89 90 59
Northrop Grumman Corp. -6 39 35 34 32
Raytheon Co. -1 1 0 2 0
United Technologies Corp. 71 79 84 80 85
Cash Conversion Cycle, Sector
Aerospace & Defense 104 109 105 112 108
Cash Conversion Cycle, Industry
Industrials 78 85 86 93 83

Based on: 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), 10-K (filing date: 2015-02-09).

1 2018 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 74 + 38 – 39 = 73

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.