Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
General Dynamics Corp., liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.18 | 1.23 | 1.40 | 1.20 | 1.17 | |
| Quick ratio | 0.73 | 0.77 | 0.90 | 0.87 | 0.85 | |
| Cash ratio | 0.05 | 0.07 | 0.23 | 0.18 | 0.22 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | General Dynamics Corp. current ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | General Dynamics Corp. quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | General Dynamics Corp. cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Current Ratio
General Dynamics Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 19,780) | 18,189) | 18,328) | 15,447) | 14,571) | |
| Current liabilities | 16,801) | 14,739) | 13,099) | 12,846) | 12,445) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.18 | 1.23 | 1.40 | 1.20 | 1.17 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Boeing Co. | 1.05 | — | — | — | — | |
| Caterpillar Inc. | 1.47 | — | — | — | — | |
| Eaton Corp. plc | 1.70 | — | — | — | — | |
| GE Aerospace | 1.16 | — | — | — | — | |
| Honeywell International Inc. | 1.34 | — | — | — | — | |
| Lockheed Martin Corp. | 1.22 | — | — | — | — | |
| RTX Corp. | 1.08 | — | — | — | — | |
| Current Ratio, Sector | ||||||
| Capital Goods | 1.17 | — | — | — | — | |
| Current Ratio, Industry | ||||||
| Industrials | 1.19 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 19,780 ÷ 16,801 = 1.18
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | General Dynamics Corp. current ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Quick Ratio
General Dynamics Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 902) | 963) | 2,983) | 2,334) | 2,785) | |
| Accounts receivable | 3,544) | 3,759) | 3,617) | 3,611) | 3,446) | |
| Unbilled receivables | 7,857) | 6,576) | 5,240) | 5,282) | 4,357) | |
| Total quick assets | 12,303) | 11,298) | 11,840) | 11,227) | 10,588) | |
| Current liabilities | 16,801) | 14,739) | 13,099) | 12,846) | 12,445) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.73 | 0.77 | 0.90 | 0.87 | 0.85 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Boeing Co. | 0.23 | — | — | — | — | |
| Caterpillar Inc. | 0.98 | — | — | — | — | |
| Eaton Corp. plc | 0.78 | — | — | — | — | |
| GE Aerospace | 0.86 | — | — | — | — | |
| Honeywell International Inc. | 0.99 | — | — | — | — | |
| Lockheed Martin Corp. | 0.93 | — | — | — | — | |
| RTX Corp. | 0.73 | — | — | — | — | |
| Quick Ratio, Sector | ||||||
| Capital Goods | 0.64 | — | — | — | — | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.71 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 12,303 ÷ 16,801 = 0.73
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | General Dynamics Corp. quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
General Dynamics Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 902) | 963) | 2,983) | 2,334) | 2,785) | |
| Total cash assets | 902) | 963) | 2,983) | 2,334) | 2,785) | |
| Current liabilities | 16,801) | 14,739) | 13,099) | 12,846) | 12,445) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.05 | 0.07 | 0.23 | 0.18 | 0.22 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Boeing Co. | 0.10 | — | — | — | — | |
| Caterpillar Inc. | 0.31 | — | — | — | — | |
| Eaton Corp. plc | 0.12 | — | — | — | — | |
| GE Aerospace | 0.60 | — | — | — | — | |
| Honeywell International Inc. | 0.58 | — | — | — | — | |
| Lockheed Martin Corp. | 0.11 | — | — | — | — | |
| RTX Corp. | 0.21 | — | — | — | — | |
| Cash Ratio, Sector | ||||||
| Capital Goods | 0.31 | — | — | — | — | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.34 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 902 ÷ 16,801 = 0.05
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | General Dynamics Corp. cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |