General DynamicsMEX:GD 87 Interest Coverage is 20.58 as of Mar. 2026, which is 83% above its 10-year median of 11.26. GuruFocus rates MEX:GD with a GF Score™ of 87/100 and a GF Value™ of MXN6,053.08 (Fairly Valued). The stock has 8 warning signs investors should review. Among 241 Aerospace & Defense companies, General Dynamics ranks better than 66.39% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. General Dynamics's
Operating Income
for the
three
months ended in Mar. 2026 was MXN25,606 Mil. General Dynamics's Interest Expense for the
three
months ended in Mar. 2026 was MXN-1,244 Mil.
General Dynamics's interest coverage for the quarter that ended in Mar. 2026 was 20.58.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for General Dynamics's Interest Coverage or its related term are showing as below:
MEX:GD'
s Interest Coverage Range Over the Past 10 Years
Min: 8.45 Med: 11.26 Max: 37.82
Current: 14.42
MEX:GD's Interest Coverage is ranked better than 66.39% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.69
vs MEX:GD: 14.42
General Dynamics (MEX:GD) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
General Dynamics Interest Coverage Related Terms
General Dynamics Interest Coverage Historical Data
* Premium members only.
The historical data trend for General Dynamics's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:GD vs HWM, RKLB, NOC: Interest Coverage Comparison
For the Aerospace & Defense subindustry, General Dynamics's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, General Dynamics's Interest Coverage distribution charts can be found below:
* The bar in red indicates where General Dynamics's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
General Dynamics (MEX:GD) has a Interest Coverage of 20.58 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on General Dynamics and its competitors. This is 83% above median its historical median of 11.26. Over the past decade, General Dynamics' Interest Coverage has ranged from 8.45 to 37.82. According to the industry distribution chart, General Dynamics ranks #81 out of 241 companies in the Aerospace & Defense industry, placing it in the top 33.6%.
Is General Dynamics' Interest Coverage too high?
General Dynamics' current Interest Coverage of 20.58 is 83% above median its 10-year median of 11.26. Over the past 10 years, this metric has ranged from a low of 8.45 to a high of 37.82. The Aerospace & Defense industry median Interest Coverage is 8.69. General Dynamics' value of 20.58 is 136.8% above this industry median. Based on the distribution chart, General Dynamics ranks #81 out of 241 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, General Dynamics has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does General Dynamics' Interest Coverage compare to HWM and RKLB?
According to the Aerospace & Defense industry distribution chart, General Dynamics ranks #81 out of 241 companies for Interest Coverage. This puts General Dynamics in the upper half of its industry. The industry median Interest Coverage is 8.69. General Dynamics' value of 20.58 is 136.8% above this benchmark. Historically, General Dynamics' own Interest Coverage has ranged from 8.45 to 37.82 over the past decade. While the company's 10-year median is 11.26 vs. the industry median of 8.69, General Dynamics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.69, based on 241 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General Dynamics's current Interest Coverage of 20.58 is 136.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on General Dynamics and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Dynamics's current Interest Coverage is 20.58, which is 83% above median its own 10-year median of 11.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General Dynamics stock overvalued right now?
Based on GuruFocus' analysis, General Dynamics (MEX:GD) is currently considered Fairly Valued. The stock's GF Value™ is MXN6,053.08, compared to a current price of MXN5,976.00 — trading 1.3% below its estimated fair value. The current Interest Coverage is 20.58, which is 83% above median its 10-year median of 11.26 and 136.8% above the Aerospace & Defense industry median of 8.69. General Dynamics' overall GF Score™ is 87/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For General Dynamics (MEX:GD), the current Interest Coverage is 20.58 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is General Dynamics (MEX:GD) Overvalued in 2026?
Based on GuruFocus' analysis, General Dynamics stock appears to be undervalued.
The current stock price of MXN5,976.00 is trading 1.3% below its estimated GF Value™ of MXN6,053.08.
GuruFocus considers General Dynamics to be Fairly Valued.
Key valuation signals for MEX:GD:
Interest Coverage: 20.58 (83% above median its 10-year median of 11.26)
GF Value™: MXN6,053.08 vs. price of MXN5,976.00 (1.3% below fair value)
Industry Position: 136.8% above the Aerospace & Defense median (#81 of 241)
No single metric tells the full story. See the MEX:GD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General Dynamics is a defense contractor and business jet manufacturer. The firm's segments are aerospace, marine, combat systems, and technologies. 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 Navy support ships. The technologies segment contains two main units: an IT business that primarily serves the government market and a mission systems business focusing on electronics that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.
87GF Score
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