General Dynamics Corp gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for General Dynamics's Gross Margin % or its related term are showing as below:
GD'
s Gross Margin % Range Over the Past 10 Years
Min: 15.43 Med: 17.28 Max: 20.15
Current: 15.43
During the past 13 years, the highestGross Margin % of General Dynamics was 20.15%. The lowest was 15.43%. And the median was 17.28%.
GD's Gross Margin % is ranked worse than 73.77% of 305
companies
in the Aerospace & Defense industry
Industry Median: 25.38
vs GD: 15.43
General Dynamics had a gross margin of 15.63% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for General Dynamics was -2.40% 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.
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.
* 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 (NYSE:GD) 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 15.63% for the quarter that ended in Dec. 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 is a defense contractor and business jet manufacturer. The firm's segments include aerospace, marine, combat systems, and technology. General Dynamics' aerospace segment manufactures 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 builds 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.
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