Gross Margin % is calculated as gross profit divided by its revenue. General Dynamics's Gross Profit for the
three
months ended in Dec. 2023 was $1,923 Mil. General Dynamics's Revenue for the
three
months ended in Dec. 2023 was $11,668 Mil. Therefore, General Dynamics's Gross Margin % for the quarter that ended in Dec. 2023 was 16.48%.
Warning Sign:
General Dynamics Corp gross margin has been in long-term decline. The average rate of decline per year is -2.6%.
The historical rank and industry rank for General Dynamics's Gross Margin % or its related term are showing as below:
GD'
s Gross Margin % Range Over the Past 10 Years
Min: 15.78 Med: 18.08 Max: 20.15
Current: 15.78
During the past 13 years, the highestGross Margin % of General Dynamics was 20.15%. The lowest was 15.78%. And the median was 18.08%.
GD's Gross Margin % is ranked worse than 72.97% of 296
companies
in the Aerospace & Defense industry
Industry Median: 26.3
vs GD: 15.78
General Dynamics had a gross margin of 16.48% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for General Dynamics was -2.60% per year.
General Dynamics Gross Margin % Historical Data
The historical data trend for General Dynamics's Gross Margin % 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.
* Premium members only.
General Dynamics Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
17.76
16.68
16.66
16.80
15.78
General Dynamics Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
16.87
15.42
15.44
15.68
16.48
Competitive Comparison
For the Aerospace & Defense subindustry, General Dynamics's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution
For the Aerospace & Defense industry and Industrials sector, General Dynamics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where General Dynamics's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
General Dynamics (NYSE:GD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
General Dynamics had a gross margin of 16.48% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
General Dynamics Gross Margin % Related Terms
Thank you for viewing the detailed overview of General Dynamics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
General Dynamics (General Dynamics) Business Description
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.
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