Is the business good?
How good a business is GD?
General Dynamics earns 14% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
14%
Return on invested capital · cost of capital 9.0% · 5.4 points above what the capital costs: growth creates value
- Cash conversion
- 1.43×
Cash conversion · 0.84× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.88%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 11% |
| FY2022 | 11% |
| FY2023 | 10% |
| FY2024 | 10% |
| FY2025 | 10% |
Details›
- Free cash flow, trailing twelve months
- $6.20B
- Net income, trailing twelve months
- $4.34B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 14%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Aerospace & Defense
Ranks #3 of 48 by Smart Score