General Dynamics EBITDA vs. Net Income
| GD Stock | USD 281.81 1.88 0.67% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 4.2 B | Current Value 2.8 B | Quarterly Volatility 1.4 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.11 | 0.1578 |
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| Operating Profit Margin | 0.078 | 0.1004 |
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| Pretax Profit Margin | 0.0754 | 0.0942 |
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For General Dynamics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of General Dynamics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well General Dynamics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between General Dynamics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of General Dynamics over time as well as its relative position and ranking within its peers.
General |
General Dynamics' Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of General Dynamics. If investors know General will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about General Dynamics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.102 | Dividend Share 5.58 | Earnings Share 13.13 | Revenue Per Share 168.226 | Quarterly Revenue Growth 0.104 |
The market value of General Dynamics is measured differently than its book value, which is the value of General that is recorded on the company's balance sheet. Investors also form their own opinion of General Dynamics' value that differs from its market value or its book value, called intrinsic value, which is General Dynamics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because General Dynamics' market value can be influenced by many factors that don't directly affect General Dynamics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between General Dynamics' value and its price as these two are different measures arrived at by different means. Investors typically determine if General Dynamics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, General Dynamics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
General Dynamics Net Income vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining General Dynamics's current stock value. Our valuation model uses many indicators to compare General Dynamics value to that of its competitors to determine the firm's financial worth. General Dynamics is one of the top stocks in ebitda category among its peers. It also is one of the top stocks in net income category among its peers making up about 0.78 of Net Income per EBITDA. The ratio of EBITDA to Net Income for General Dynamics is roughly 1.28 . At present, General Dynamics' EBITDA is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value General Dynamics by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.General Net Income vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
General Dynamics |
| = | 4.25 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
General Dynamics |
| = | 3.31 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
General Net Income Comparison
General Dynamics is currently under evaluation in net income category among its peers.
General Dynamics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in General Dynamics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, General Dynamics will eventually generate negative long term returns. The profitability progress is the general direction of General Dynamics' change in net profit over the period of time. It can combine multiple indicators of General Dynamics, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.2 B | -1.2 B | |
| Operating Income | 4.2 B | 2.4 B | |
| Income Before Tax | 4 B | 2.2 B | |
| Total Other Income Expense Net | -261 M | -247.9 M | |
| Net Income | 3.3 B | 1.8 B | |
| Income Tax Expense | -669 M | -635.5 M | |
| Net Income Applicable To Common Shares | 3.9 B | 2.4 B | |
| Net Income From Continuing Ops | 3.3 B | 3 B | |
| Non Operating Income Net Other | 217.3 M | 228.2 M | |
| Interest Income | 56 M | 53.2 M | |
| Net Interest Income | -343 M | -360.1 M | |
| Change To Netincome | -11.7 M | -11.1 M | |
| Net Income Per Share | 12.14 | 12.74 | |
| Income Quality | 1.42 | 0.98 | |
| Net Income Per E B T | 0.83 | 0.87 |
General Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on General Dynamics. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of General Dynamics position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the General Dynamics' important profitability drivers and their relationship over time.
Use General Dynamics in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if General Dynamics position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in General Dynamics will appreciate offsetting losses from the drop in the long position's value.General Dynamics Pair Trading
General Dynamics Pair Trading Analysis
The ability to find closely correlated positions to General Dynamics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace General Dynamics when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back General Dynamics - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling General Dynamics to buy it.
The correlation of General Dynamics is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as General Dynamics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if General Dynamics moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for General Dynamics can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your General Dynamics position
In addition to having General Dynamics in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project General Dynamics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of General Dynamics at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include General Dynamics' income statement, its balance sheet, and the statement of cash flows.