General Dynamics (FRA:GDX) Asset Turnover

: 0.19 (As of Mar. 2023)

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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. General Dynamics's Revenue for the three months ended in Mar. 2023 was €9,229 Mil. General Dynamics's Total Assets for the quarter that ended in Mar. 2023 was €48,677 Mil. Therefore, General Dynamics's Asset Turnover for the quarter that ended in Mar. 2023 was 0.19.

Asset Turnover is linked to ROE % through Du Pont Formula. General Dynamics's annualized ROE % for the quarter that ended in Mar. 2023 was 15.43%. It is also linked to ROA % through Du Pont Formula. General Dynamics's annualized ROA % for the quarter that ended in Mar. 2023 was 5.60%.

General Dynamics Asset Turnover Historical Data

The historical data trend for General Dynamics's Asset Turnover 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 Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Asset Turnover

0.92

0.84

0.72

0.79

0.80

General Dynamics Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Asset Turnover																0.19	0.19	0.20	0.20	0.19

Competitive Comparison

For the Aerospace & Defense subindustry, General Dynamics's Asset Turnover, along with its competitors' market caps and Asset Turnover 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 Asset Turnover Distribution

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

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

General Dynamics Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

General Dynamics's Asset Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Dec. 2022 )	/	( (Total Assets (A: Dec. 2021 )	+	Total Assets (A: Dec. 2022 ))	/ count )
=	37200.208	/	( (44314.605	+	48696.24)	/ 2 )
=	37200.208	/	46505.4225
=	0.80

General Dynamics's Asset Turnover for the quarter that ended in Mar. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Mar. 2023 )	/	( (Total Assets (Q: Dec. 2022 )	+	Total Assets (Q: Mar. 2023 ))	/ count )
=	9228.854	/	( (48696.24	+	48657.664)	/ 2 )
=	9228.854	/	48676.952
=	0.19

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

General Dynamics (FRA:GDX) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

General Dynamics's annulized ROE % for the quarter that ended in Mar. 2023 is

	ROE %^**		(Q: Mar. 2023 )
=	Net Income	/	Total Stockholders Equity
=	2727.28	/	17677.725
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(2727.28 / 36915.416)	*	(36915.416 / 48676.952)	*	(48676.952/ 17677.725)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	7.39 %	*	0.7584	*	2.7536
=	ROA %	*	Equity Multiplier
=	5.60 %	*	2.7536
=	15.43 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

General Dynamics's annulized ROA % for the quarter that ended in Mar. 2023 is

	ROA %		(Q: Mar. 2023 )
=	Net Income	/	Total Assets
=	2727.28	/	48676.952
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(2727.28 / 36915.416)	*	(36915.416 / 48676.952)
=	Net Margin %	*	Asset Turnover
=	7.39 %	*	0.7584
=	5.60 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

General Dynamics Asset Turnover 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 » Asset Turnover

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.