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General Dynamics (FRA:GDX) Quick Ratio : 0.87 (As of Mar. 2024)


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What is General Dynamics Quick Ratio?

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. General Dynamics's quick ratio for the quarter that ended in Mar. 2024 was 0.87.

General Dynamics has a quick ratio of 0.87. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for General Dynamics's Quick Ratio or its related term are showing as below:

FRA:GDX' s Quick Ratio Range Over the Past 10 Years
Min: 0.48   Med: 0.87   Max: 1.1
Current: 0.87

During the past 13 years, General Dynamics's highest Quick Ratio was 1.10. The lowest was 0.48. And the median was 0.87.

FRA:GDX's Quick Ratio is ranked worse than
67.3% of 315 companies
in the Aerospace & Defense industry
Industry Median: 1.14 vs FRA:GDX: 0.87

General Dynamics Quick Ratio Historical Data

The historical data trend for General Dynamics's Quick Ratio 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 Quick Ratio Chart

General Dynamics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.83 0.99 1.05 0.96 0.92

General Dynamics Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Quick Ratio 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 0.94 0.90 0.91 0.92 0.87

Competitive Comparison of General Dynamics's Quick Ratio

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

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

* The bar in red indicates where General Dynamics's Quick Ratio falls into.



General Dynamics Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

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

Quick Ratio (A: Dec. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(21654.955-7866.026)/15068.144
=0.92

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

Quick Ratio (Q: Mar. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(22260.32-8821.88)/15446.8
=0.87

* 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  (FRA:GDX) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


General Dynamics Quick Ratio 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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