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General Dynamics Financial Strength

: 5 (As of Jun. 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 Jun. 2022 was 10.29. General Dynamics's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.36. As of today, General Dynamics's Altman Z-Score is 3.32.


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.

   

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 into.



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 Jun. 2022 was $-95 Mil. Its Operating Income for the months ended in Jun. 2022 was $978 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $11,105 Mil.

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

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*978/-95
=10.29

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 Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2067 + 11105) / 36756
=0.36

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 3.32, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.32 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  (NYSE:GD) 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

Thank you for viewing the detailed overview of General Dynamics's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


General Dynamics Business Description

General Dynamics logo
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, combat systems, marine, and technologies. The company's aerospace segment creates Gulfstream business jets. Combat systems 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 business 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.
Executives
Crown James S director 222 N LASALLE STREET STE 2000 CHICAGO IL 60601
Steel Robert K director 85 BROAD STREET NEW YORK NY 10004
Deep Danny officer: Vice President 11011 SUNSET HILLS ROAD RESTON VA 20190
Stratton John G director 1095 AVENUE OF THE AMERICAS, 8TH FLOOR NEW YORK NY 10036
Graney Kevin M officer: Vice President 11011 SUNSET HILLS ROAD RESTON VA 20190
Smith Robert Edward officer: Executive Vice President 2941 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Haney Cecil D director C/O GENERAL DYNAMICS CORPORATION 11011 SUNSET HILLS ROAD RESTON VA 20190
Brady Christopher J officer: Vice President C/O GENERAL DYNAMICS CORPORATION 11011 SUNSET HILLS ROAD RESTON VA 20190
Nye C Howard director 2710 WYCLIFF ROAD RALEIGH NC 27607
Reynolds Catherine B director PO BOX 9870 MCLEAN VA 22102
Moss William A officer: Vice President and Controller 2941 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Wall Peter A director C/O GENERAL DYNAMICS CORPORATION 2941 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Malcolm Mark director TOWER INTERNATIONAL, INC. 17672 LAUREL PARK DRIVE N., SUITE 400E LIVONIA MI 48152
Burns Mark Lagrand officer: Vice President 2941 FAIRVIEW PARK DRIVE SUITE 100 FALLS CHURCH VA 22042
Gilliland Marguerite Amy officer: Senior Vice President 2941 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042

General Dynamics Headlines

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