Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
General Dynamics Corp., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | General Dynamics Corp. gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | General Dynamics Corp. operating profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | General Dynamics Corp. net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | General Dynamics Corp. ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | General Dynamics Corp. ROA deteriorated from 2017 to 2018 and from 2018 to 2019. |
Gross Profit Margin
General Dynamics Corp., gross profit margin 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) | ||||||
| Gross profit | 7,059) | 6,715) | 6,187) | 6,249) | 6,130) | |
| Revenue | 39,350) | 36,193) | 30,973) | 31,353) | 31,469) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 17.94% | 18.55% | 19.98% | 19.93% | 19.48% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Boeing Co. | 5.83% | — | — | — | — | |
| Caterpillar Inc. | 27.83% | — | — | — | — | |
| Eaton Corp. plc | 32.97% | — | — | — | — | |
| GE Aerospace | 23.52% | — | — | — | — | |
| Honeywell International Inc. | 33.70% | — | — | — | — | |
| Lockheed Martin Corp. | 13.99% | — | — | — | — | |
| RTX Corp. | 25.93% | — | — | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 7,059 ÷ 39,350 = 17.94%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | General Dynamics Corp. gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Operating Profit Margin
General Dynamics Corp., operating profit margin 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) | ||||||
| Operating earnings | 4,648) | 4,457) | 4,177) | 4,309) | 4,178) | |
| Revenue | 39,350) | 36,193) | 30,973) | 31,353) | 31,469) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 11.81% | 12.31% | 13.49% | 13.74% | 13.28% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Boeing Co. | -2.58% | — | — | — | — | |
| Caterpillar Inc. | 16.33% | — | — | — | — | |
| Eaton Corp. plc | 13.38% | — | — | — | — | |
| GE Aerospace | 12.84% | — | — | — | — | |
| Honeywell International Inc. | 18.66% | — | — | — | — | |
| Lockheed Martin Corp. | 14.29% | — | — | — | — | |
| RTX Corp. | 11.64% | — | — | — | — | |
| Operating Profit Margin, Sector | ||||||
| Capital Goods | 10.93% | — | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 9.67% | — | — | — | — | |
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
Operating profit margin = 100 × Operating earnings ÷ Revenue
= 100 × 4,648 ÷ 39,350 = 11.81%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | General Dynamics Corp. operating profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Net Profit Margin
General Dynamics Corp., net profit margin 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) | ||||||
| Net earnings | 3,484) | 3,345) | 2,912) | 2,955) | 2,965) | |
| Revenue | 39,350) | 36,193) | 30,973) | 31,353) | 31,469) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 8.85% | 9.24% | 9.40% | 9.42% | 9.42% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Boeing Co. | -0.83% | — | — | — | — | |
| Caterpillar Inc. | 12.00% | — | — | — | — | |
| Eaton Corp. plc | 10.34% | — | — | — | — | |
| GE Aerospace | -5.69% | — | — | — | — | |
| Honeywell International Inc. | 16.73% | — | — | — | — | |
| Lockheed Martin Corp. | 10.42% | — | — | — | — | |
| RTX Corp. | 7.19% | — | — | — | — | |
| Net Profit Margin, Sector | ||||||
| Capital Goods | 5.03% | — | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Industrials | 3.90% | — | — | — | — | |
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
Net profit margin = 100 × Net earnings ÷ Revenue
= 100 × 3,484 ÷ 39,350 = 8.85%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | General Dynamics Corp. net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Return on Equity (ROE)
General Dynamics Corp., ROE 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) | ||||||
| Net earnings | 3,484) | 3,345) | 2,912) | 2,955) | 2,965) | |
| Shareholders’ equity | 13,577) | 11,732) | 11,435) | 10,976) | 10,738) | |
| Profitability Ratio | ||||||
| ROE1 | 25.66% | 28.51% | 25.47% | 26.92% | 27.61% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 41.77% | — | — | — | — | |
| Eaton Corp. plc | 13.75% | — | — | — | — | |
| GE Aerospace | -17.58% | — | — | — | — | |
| Honeywell International Inc. | 33.22% | — | — | — | — | |
| Lockheed Martin Corp. | 199.23% | — | — | — | — | |
| RTX Corp. | 13.25% | — | — | — | — | |
| ROE, Sector | ||||||
| Capital Goods | 18.11% | — | — | — | — | |
| ROE, Industry | ||||||
| Industrials | 13.76% | — | — | — | — | |
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
ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 3,484 ÷ 13,577 = 25.66%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | General Dynamics Corp. ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Return on Assets (ROA)
General Dynamics Corp., ROA 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) | ||||||
| Net earnings | 3,484) | 3,345) | 2,912) | 2,955) | 2,965) | |
| Total assets | 48,841) | 45,408) | 35,046) | 32,872) | 31,997) | |
| Profitability Ratio | ||||||
| ROA1 | 7.13% | 7.37% | 8.31% | 8.99% | 9.27% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Boeing Co. | -0.48% | — | — | — | — | |
| Caterpillar Inc. | 7.77% | — | — | — | — | |
| Eaton Corp. plc | 6.74% | — | — | — | — | |
| GE Aerospace | -1.87% | — | — | — | — | |
| Honeywell International Inc. | 10.47% | — | — | — | — | |
| Lockheed Martin Corp. | 13.11% | — | — | — | — | |
| RTX Corp. | 3.96% | — | — | — | — | |
| ROA, Sector | ||||||
| Capital Goods | 2.72% | — | — | — | — | |
| ROA, Industry | ||||||
| Industrials | 2.39% | — | — | — | — | |
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
ROA = 100 × Net earnings ÷ Total assets
= 100 × 3,484 ÷ 48,841 = 7.13%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | General Dynamics Corp. ROA deteriorated from 2017 to 2018 and from 2018 to 2019. |