Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
General Dynamics Corp., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | General Dynamics Corp. inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | General Dynamics Corp. receivables turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | General Dynamics Corp. payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | General Dynamics Corp. working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | General Dynamics Corp. number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | General Dynamics Corp. number of days of receivables outstanding improved from 2017 to 2018 and from 2018 to 2019. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | General Dynamics Corp. operating cycle improved from 2017 to 2018 and from 2018 to 2019. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | General Dynamics Corp. number of days of payables outstanding decreased from 2017 to 2018 and from 2018 to 2019. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | General Dynamics Corp. cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019. |
Inventory Turnover
General Dynamics Corp., inventory turnover 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) | ||||||
| Cost of revenue | 32,291) | 29,478) | 24,786) | 25,104) | 25,339) | |
| Inventories | 6,306) | 5,977) | 5,303) | 3,523) | 3,366) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 5.12 | 4.93 | 4.67 | 7.13 | 7.53 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Boeing Co. | 0.94 | — | — | — | — | |
| Caterpillar Inc. | 3.25 | — | — | — | — | |
| Eaton Corp. plc | 5.11 | — | — | — | — | |
| GE Aerospace | 4.74 | — | — | — | — | |
| Honeywell International Inc. | 5.51 | — | — | — | — | |
| Lockheed Martin Corp. | 14.22 | — | — | — | — | |
| RTX Corp. | 5.21 | — | — | — | — | |
| Inventory Turnover, Sector | ||||||
| Capital Goods | 2.61 | — | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Industrials | 3.94 | — | — | — | — | |
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
Inventory turnover = Cost of revenue ÷ Inventories
= 32,291 ÷ 6,306 = 5.12
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | General Dynamics Corp. inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Receivables Turnover
General Dynamics Corp., receivables turnover 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) | ||||||
| Revenue | 39,350) | 36,193) | 30,973) | 31,353) | 31,469) | |
| Accounts receivable | 3,544) | 3,759) | 3,617) | 3,611) | 3,446) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 11.10 | 9.63 | 8.56 | 8.68 | 9.13 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Boeing Co. | 23.44 | — | — | — | — | |
| Caterpillar Inc. | 5.92 | — | — | — | — | |
| Eaton Corp. plc | 6.22 | — | — | — | — | |
| GE Aerospace | 5.22 | — | — | — | — | |
| Honeywell International Inc. | 4.90 | — | — | — | — | |
| Lockheed Martin Corp. | 25.59 | — | — | — | — | |
| RTX Corp. | 5.70 | — | — | — | — | |
| Receivables Turnover, Sector | ||||||
| Capital Goods | 7.40 | — | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Industrials | 7.67 | — | — | — | — | |
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
Receivables turnover = Revenue ÷ Accounts receivable
= 39,350 ÷ 3,544 = 11.10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | General Dynamics Corp. receivables turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Payables Turnover
General Dynamics Corp., payables turnover 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) | ||||||
| Cost of revenue | 32,291) | 29,478) | 24,786) | 25,104) | 25,339) | |
| Accounts payable | 3,162) | 3,179) | 3,207) | 2,538) | 1,964) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 10.21 | 9.27 | 7.73 | 9.89 | 12.90 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Boeing Co. | 4.63 | — | — | — | — | |
| Caterpillar Inc. | 6.15 | — | — | — | — | |
| Eaton Corp. plc | 6.78 | — | — | — | — | |
| GE Aerospace | 4.20 | — | — | — | — | |
| Honeywell International Inc. | 4.25 | — | — | — | — | |
| Lockheed Martin Corp. | 40.16 | — | — | — | — | |
| RTX Corp. | 5.28 | — | — | — | — | |
| Payables Turnover, Sector | ||||||
| Capital Goods | 5.63 | — | — | — | — | |
| Payables Turnover, Industry | ||||||
| Industrials | 7.40 | — | — | — | — | |
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
Payables turnover = Cost of revenue ÷ Accounts payable
= 32,291 ÷ 3,162 = 10.21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | General Dynamics Corp. payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019. |
Working Capital Turnover
General Dynamics Corp., working capital turnover 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) | |
| Less: Current liabilities | 16,801) | 14,739) | 13,099) | 12,846) | 12,445) | |
| Working capital | 2,979) | 3,450) | 5,229) | 2,601) | 2,126) | |
| Revenue | 39,350) | 36,193) | 30,973) | 31,353) | 31,469) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 13.21 | 10.49 | 5.92 | 12.05 | 14.80 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Boeing Co. | 15.57 | — | — | — | — | |
| Caterpillar Inc. | 4.04 | — | — | — | — | |
| Eaton Corp. plc | 5.95 | — | — | — | — | |
| GE Aerospace | 7.03 | — | — | — | — | |
| Honeywell International Inc. | 5.92 | — | — | — | — | |
| Lockheed Martin Corp. | 19.15 | — | — | — | — | |
| RTX Corp. | 26.47 | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Capital Goods | 8.95 | — | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 10.00 | — | — | — | — | |
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
Working capital turnover = Revenue ÷ Working capital
= 39,350 ÷ 2,979 = 13.21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | General Dynamics Corp. working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Average Inventory Processing Period
General Dynamics Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 5.12 | 4.93 | 4.67 | 7.13 | 7.53 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 71 | 74 | 78 | 51 | 48 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Boeing Co. | 388 | — | — | — | — | |
| Caterpillar Inc. | 112 | — | — | — | — | |
| Eaton Corp. plc | 71 | — | — | — | — | |
| GE Aerospace | 77 | — | — | — | — | |
| Honeywell International Inc. | 66 | — | — | — | — | |
| Lockheed Martin Corp. | 26 | — | — | — | — | |
| RTX Corp. | 70 | — | — | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Capital Goods | 140 | — | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.12 = 71
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | General Dynamics Corp. number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019. |
Average Receivable Collection Period
General Dynamics Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 11.10 | 9.63 | 8.56 | 8.68 | 9.13 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 33 | 38 | 43 | 42 | 40 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Boeing Co. | 16 | — | — | — | — | |
| Caterpillar Inc. | 62 | — | — | — | — | |
| Eaton Corp. plc | 59 | — | — | — | — | |
| GE Aerospace | 70 | — | — | — | — | |
| Honeywell International Inc. | 75 | — | — | — | — | |
| Lockheed Martin Corp. | 14 | — | — | — | — | |
| RTX Corp. | 64 | — | — | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Capital Goods | 49 | — | — | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 48 | — | — | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.10 = 33
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | General Dynamics Corp. number of days of receivables outstanding improved from 2017 to 2018 and from 2018 to 2019. |
Operating Cycle
General Dynamics Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 71 | 74 | 78 | 51 | 48 | |
| Average receivable collection period | 33 | 38 | 43 | 42 | 40 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 104 | 112 | 121 | 93 | 88 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Boeing Co. | 404 | — | — | — | — | |
| Caterpillar Inc. | 174 | — | — | — | — | |
| Eaton Corp. plc | 130 | — | — | — | — | |
| GE Aerospace | 147 | — | — | — | — | |
| Honeywell International Inc. | 141 | — | — | — | — | |
| Lockheed Martin Corp. | 40 | — | — | — | — | |
| RTX Corp. | 134 | — | — | — | — | |
| Operating Cycle, Sector | ||||||
| Capital Goods | 189 | — | — | — | — | |
| Operating Cycle, Industry | ||||||
| Industrials | 141 | — | — | — | — | |
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 cycle = Average inventory processing period + Average receivable collection period
= 71 + 33 = 104
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | General Dynamics Corp. operating cycle improved from 2017 to 2018 and from 2018 to 2019. |
Average Payables Payment Period
General Dynamics Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 10.21 | 9.27 | 7.73 | 9.89 | 12.90 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 36 | 39 | 47 | 37 | 28 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Boeing Co. | 79 | — | — | — | — | |
| Caterpillar Inc. | 59 | — | — | — | — | |
| Eaton Corp. plc | 54 | — | — | — | — | |
| GE Aerospace | 87 | — | — | — | — | |
| Honeywell International Inc. | 86 | — | — | — | — | |
| Lockheed Martin Corp. | 9 | — | — | — | — | |
| RTX Corp. | 69 | — | — | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Capital Goods | 65 | — | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 49 | — | — | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.21 = 36
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | General Dynamics Corp. number of days of payables outstanding decreased from 2017 to 2018 and from 2018 to 2019. |
Cash Conversion Cycle
General Dynamics Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 71 | 74 | 78 | 51 | 48 | |
| Average receivable collection period | 33 | 38 | 43 | 42 | 40 | |
| Average payables payment period | 36 | 39 | 47 | 37 | 28 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 68 | 73 | 74 | 56 | 60 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Boeing Co. | 325 | — | — | — | — | |
| Caterpillar Inc. | 115 | — | — | — | — | |
| Eaton Corp. plc | 76 | — | — | — | — | |
| GE Aerospace | 60 | — | — | — | — | |
| Honeywell International Inc. | 55 | — | — | — | — | |
| Lockheed Martin Corp. | 31 | — | — | — | — | |
| RTX Corp. | 65 | — | — | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Capital Goods | 124 | — | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 92 | — | — | — | — | |
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 71 + 33 – 36 = 68
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | General Dynamics Corp. cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019. |