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General Dynamics (FRA:GDX) Gross Margin % : 15.50% (As of Mar. 2024)


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What is General Dynamics Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. General Dynamics's Gross Profit for the three months ended in Mar. 2024 was €1,530 Mil. General Dynamics's Revenue for the three months ended in Mar. 2024 was €9,873 Mil. Therefore, General Dynamics's Gross Margin % for the quarter that ended in Mar. 2024 was 15.50%.

Warning Sign:

General Dynamics Corp gross margin has been in long-term decline. The average rate of decline per year is -2.6%.


The historical rank and industry rank for General Dynamics's Gross Margin % or its related term are showing as below:

FRA:GDX' s Gross Margin % Range Over the Past 10 Years
Min: 15.78   Med: 18.08   Max: 20.15
Current: 15.8


During the past 13 years, the highest Gross Margin % of General Dynamics was 20.15%. The lowest was 15.78%. And the median was 18.08%.

FRA:GDX's Gross Margin % is ranked worse than
72.3% of 296 companies
in the Aerospace & Defense industry
Industry Median: 25.875 vs FRA:GDX: 15.80

General Dynamics had a gross margin of 15.50% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for General Dynamics was -2.60% per year.


General Dynamics Gross Margin % Historical Data

The historical data trend for General Dynamics's Gross Margin % 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 Gross Margin % Chart

General Dynamics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.76 16.68 16.66 16.80 15.78

General Dynamics Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % 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 15.42 15.44 15.68 16.48 15.50

Competitive Comparison of General Dynamics's Gross Margin %

For the Aerospace & Defense subindustry, General Dynamics's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, General Dynamics's Gross Margin % distribution charts can be found below:

* The bar in red indicates where General Dynamics's Gross Margin % falls into.



General Dynamics Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

General Dynamics's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=6118.2 / 38763.424
=(Revenue - Cost of Goods Sold) / Revenue
=(38763.424 - 32645.2) / 38763.424
=15.78 %

General Dynamics's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=1530 / 9872.52
=(Revenue - Cost of Goods Sold) / Revenue
=(9872.52 - 8342.56) / 9872.52
=15.50 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


General Dynamics  (FRA:GDX) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

General Dynamics had a gross margin of 15.50% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


General Dynamics Gross Margin % Related Terms

Thank you for viewing the detailed overview of General Dynamics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


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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