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 Dec. 2023 was 0.92.
General Dynamics has a quick ratio of 0.92. 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:
GD'
s Quick Ratio Range Over the Past 10 Years
Min: 0.55 Med: 0.89 Max: 1.05
Current: 0.92
During the past 13 years, General Dynamics's highest Quick Ratio was 1.05. The lowest was 0.55. And the median was 0.89.
GD's Quick Ratio is ranked worse than 62.3% of 313
companies
in the Aerospace & Defense industry
Industry Median: 1.09
vs GD: 0.92
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.
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 Quick Ratio Distribution
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
* 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 (NYSE:GD) 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
Thank you for viewing the detailed overview of General Dynamics's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
General Dynamics (General Dynamics) Business Description
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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
GD has been successfully added to your 