General Dynamics (General Dynamics) Interest Coverage

: 16.51 (As of Dec. 2023)

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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 by its Interest Expense. General Dynamics's Operating Income for the three months ended in Dec. 2023 was $1,288 Mil. General Dynamics's Interest Expense for the three months ended in Dec. 2023 was $-78 Mil. General Dynamics's interest coverage for the quarter that ended in Dec. 2023 was 16.51. The higher the ratio, the stronger the company's financial strength is.

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

GD' s Interest Coverage Range Over the Past 10 Years
Min: 8.45 Med: 11.26 Max: 43.83
Current: 12.38

GD's Interest Coverage is ranked better than
66.67% of 216 companies
in the Aerospace & Defense industry
Industry Median: 7.04 vs GD: 12.38

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

General Dynamics Interest Coverage Historical Data

The historical data trend for General Dynamics's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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General Dynamics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

9.68

8.45

9.66

10.77

10.64

General Dynamics Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																14.44	10.31	10.81	12.44	16.51

Competitive Comparison

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

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

* The bar in red indicates where General Dynamics's Interest Coverage falls into.

General Dynamics Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

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

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

Here, for the fiscal year that ended in Dec. 2023, General Dynamics's Interest Expense was $-399 Mil. Its Operating Income was $4,245 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,251 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4245	/	-399
	=	10.64

General Dynamics's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, General Dynamics's Interest Expense was $-78 Mil. Its Operating Income was $1,288 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,251 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1288	/	-78
	=	16.51

The higher the ratio, the stronger the company's Financial Strength is.

General Dynamics (NYSE:GD) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

General Dynamics Interest Coverage Related Terms

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

General Dynamics (General Dynamics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » General Dynamics Corp (NYSE:GD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

1GD:Italy GDX:Germany GDX:Germany GDX:Germany GDBR34:Brazil

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, 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.

Executives

Gregory S Gallopoulos	officer: Senior VP, Gen. Counsel, Sec.	C/O GENERAL DYNAMICS CORPORATION, 2941 FAIRVIEW PARK DRIVE, SUITE 100, FALLS CHURCH VA 22042
Phebe N Novakovic	director, officer: Chairman and CEO
Marguerite Amy Gilliland	officer: Senior Vice President	2941 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Charles W Hooper	director	C/O APA CORPORATION, 2000 POST OAK BLVD STE 100, HOUSTON TX 77056
Mark Malcolm	director	TOWER INTERNATIONAL, INC., 17672 LAUREL PARK DRIVE N., SUITE 400E, LIVONIA MI 48152
Richard D Clarke	director	11011 SUNSET HILLS ROAD, RESTON VA 20190
Mark Lagrand Burns	officer: Vice President	2941 FAIRVIEW PARK DRIVE, SUITE 100, FALLS CHURCH VA 22042
Mark C. Roualet	officer: Vice President	C/O GENERAL DYNAMICS CORPORATION, 2941 FAIRVIEW PARK DRIVE, SUITE 100, FALLS CHURCH VA 22042
William A Moss	officer: Vice President and Controller	2941 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
James S Crown	director	222 N LASALLE STREET, STE 2000, CHICAGO IL 60601
Robert K Steel	director	85 BROAD STREET, NEW YORK NY 10004
William A Osborn	director	100 NE ADAMS STREET, PEORIA IL 61629
Danny Deep	officer: Vice President	11011 SUNSET HILLS ROAD, RESTON VA 20190
John G Stratton	director	1095 AVENUE OF THE AMERICAS, 8TH FLOOR, NEW YORK NY 10036
Lester L Lyles	director	C/O MTC TECHNOLOGIES INC, 4032 LINDEN AVENUE, DAYTON OH 45432