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General Dynamics (FRA:GDX) Piotroski F-Score : 5 (As of Jul. 16, 2024)


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What is General Dynamics Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

General Dynamics has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for General Dynamics's Piotroski F-Score or its related term are showing as below:

FRA:GDX' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of General Dynamics was 8. The lowest was 4. And the median was 6.


General Dynamics Piotroski F-Score Historical Data

The historical data trend for General Dynamics's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

General Dynamics Piotroski F-Score Chart

General Dynamics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 5.00 5.00 8.00 7.00

General Dynamics Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 7.00 7.00 5.00

Competitive Comparison of General Dynamics's Piotroski F-Score

For the Aerospace & Defense subindustry, General Dynamics's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


General Dynamics's Piotroski F-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, General Dynamics's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where General Dynamics's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 686.712 + 783.332 + 921.585 + 735.08 = €3,127 Mil.
Cash Flow from Operations was 674.713 + 1237.777 + 1096.732 + -255.76 = €2,753 Mil.
Revenue was 9370.296 + 9905.027 + 10699.556 + 9872.52 = €39,847 Mil.
Gross Profit was 1446.341 + 1553.546 + 1763.391 + 1529.96 = €6,293 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(48657.664 + 48509.188 + 50152.925 + 50260.77 + 50826.32) / 5 = €49681.3734 Mil.
Total Assets at the begining of this year (Mar23) was €48,658 Mil.
Long-Term Debt & Capital Lease Obligation was €9,413 Mil.
Total Current Assets was €22,260 Mil.
Total Current Liabilities was €15,447 Mil.
Net Income was 724.636 + 911.02 + 936.448 + 681.82 = €3,254 Mil.

Revenue was 8692.794 + 10074.75 + 10243.344 + 9228.854 = €38,240 Mil.
Gross Profit was 1506.032 + 1681.65 + 1728.464 + 1423.416 = €6,340 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(46195.408 + 47755.026 + 51627.16 + 48696.24 + 48657.664) / 5 = €48586.2996 Mil.
Total Assets at the begining of last year (Mar22) was €46,195 Mil.
Long-Term Debt & Capital Lease Obligation was €9,869 Mil.
Total Current Assets was €20,163 Mil.
Total Current Liabilities was €14,462 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

General Dynamics's current Net Income (TTM) was 3,127. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

General Dynamics's current Cash Flow from Operations (TTM) was 2,753. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=3126.709/48657.664
=0.06425933

ROA (Last Year)=Net Income/Total Assets (Mar22)
=3253.924/46195.408
=0.07043826

General Dynamics's return on assets of this year was 0.06425933. General Dynamics's return on assets of last year was 0.07043826. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

General Dynamics's current Net Income (TTM) was 3,127. General Dynamics's current Cash Flow from Operations (TTM) was 2,753. ==> 2,753 <= 3,127 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=9413.44/49681.3734
=0.18947624

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=9868.644/48586.2996
=0.20311578

General Dynamics's gearing of this year was 0.18947624. General Dynamics's gearing of last year was 0.20311578. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar24)=Total Current Assets/Total Current Liabilities
=22260.32/15446.8
=1.44109589

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=20163.192/14462.056
=1.39421338

General Dynamics's current ratio of this year was 1.44109589. General Dynamics's current ratio of last year was 1.39421338. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

General Dynamics's number of shares in issue this year was 277.004. General Dynamics's number of shares in issue last year was 276.646. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=6293.238/39847.399
=0.15793347

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=6339.562/38239.742
=0.16578464

General Dynamics's gross margin of this year was 0.15793347. General Dynamics's gross margin of last year was 0.16578464. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=39847.399/48657.664
=0.81893366

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=38239.742/46195.408
=0.82778232

General Dynamics's asset turnover of this year was 0.81893366. General Dynamics's asset turnover of last year was 0.82778232. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+0+1+1+0+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

General Dynamics has an F-score of 4 indicating the company's financial situation is typical for a stable company.

General Dynamics  (FRA:GDX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


General Dynamics Piotroski F-Score Related Terms

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General Dynamics (FRA:GDX) Business Description

Address
11011 Sunset Hills Road, Reston, VA, USA, 20190
General Dynamics is a defense contractor and business jet manufacturer. The firm's segments include aerospace, marine, combat systems, and technologies. General Dynamics' aerospace segment creates Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment creates and services nuclear-powered submarines, destroyers, and other ships. The technologies segment contains two main units, an IT business that primarily serves the government market and a mission systems business that focuses on products that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.

General Dynamics (FRA:GDX) Headlines

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