General Dynamics (FRA:GDX) Financial Strength

: 5 (As of Dec. 2022)

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General Dynamics has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

General Dynamics's Interest Coverage for the quarter that ended in Dec. 2022 was 14.44. General Dynamics's debt to revenue ratio for the quarter that ended in Dec. 2022 was 0.28. As of today, General Dynamics's Altman Z-Score is 3.29.

Competitive Comparison

For the Aerospace & Defense subindustry, General Dynamics's Financial Strength, along with its competitors' market caps and Financial Strength 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.

Annual Data Quarterly Data

General Dynamics Financial Strength Distribution

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

* The bar in red indicates where General Dynamics's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

General Dynamics Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

General Dynamics's Interest Expense for the months ended in Dec. 2022 was €-80 Mil. Its Operating Income for the months ended in Dec. 2022 was €1,158 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was €9,981 Mil.

General Dynamics's Interest Coverage for the quarter that ended in Dec. 2022 is

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2022 )	/	Interest Expense (Q: Dec. 2022 )
	=	-1	*	1158.2879999981	/	-80.239999999872
	=	14.44

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

General Dynamics's Debt to Revenue Ratio for the quarter that ended in Dec. 2022 is

Debt to Revenue Ratio	=	Total Debt (Q: Dec. 2022 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(1454.7039999977	+	9980.911999984)	/	40973.375999934
	=	0.28

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

General Dynamics has a Z-score of 3.29, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.29 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

General Dynamics has the Financial Strength Rank of 5.

General Dynamics Financial Strength Related Terms

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General Dynamics (FRA:GDX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » General Dynamics Corp (FRA:GDX) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

GD:USA GD:Mexico GDX:Germany GDBR34:Brazil GEDY:Austria

Address

11011 Sunset Hills Road, Reston, VA, USA, 20190

Website

https://www.gd.com

General Dynamics is a defense contractor and business jet manufacturer. The firm's segments include aerospace, combat systems, marine, and technologies. General Dynamics' aerospace segment creates Gulfstream business jets. Combat system produces land-based combat vehicles, such as the M1 Abrams tank. The marine subsegment creates nuclear-powered submarines, among other things. 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, computers, intelligence, surveillance, and reconnaissance capabilities to the military.