General Beneish M Score

GD
 Stock
  

USD 223.86  2.61  1.18%   

This module uses fundamental data of General Dynamics to approximate the value of its Beneish M Score. General Dynamics M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check General Dynamics Piotroski F Score and General Dynamics Altman Z Score analysis.
  
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General Dynamics Debt to Equity Ratio is projected to increase slightly based on the last few years of reporting. The past year's Debt to Equity Ratio was at 1.84. General Dynamics Calculated Tax Rate is projected to decrease significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 15.90. The current year PPandE Turnover is expected to grow to 9.14, whereas Accrued Expenses Turnover is forecasted to decline to 20.62.
At this time, it appears that General Dynamics Corp is an unlikely manipulator. The earnings manipulation may begin if General Dynamics' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by General Dynamics executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of General Dynamics' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.85
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.97Focus
Asset QualityN/AFocus
Expense Coverage1.04Focus
Gross Margin Strengs1.0Focus
Accruals Factor1.04Focus
Depreciation Resistance1.05Focus
Net Sales Growth1.03Focus
Financial Leverage Condition0.98Focus

General Dynamics Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if General Dynamics' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues39.8 B38.5 B
Sufficiently Up
Increasing
Slightly volatile
Selling General and Administrative Expense2.4 B2.2 B
Notably Up
Increasing
Slightly volatile
Net Cash Flow from Operations4.1 B4.3 B
Sufficiently Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion509.2 M568 M
Moderately Down
Decreasing
Slightly volatile
Total Assets49.3 B50.1 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net5.1 B5.4 B
Notably Down
Increasing
Slightly volatile
Trade and Non Trade Receivables11.6 B11.5 B
Slightly Up
Increasing
Slightly volatile
Total Liabilities32.5 B32.4 B
Slightly Up
Increasing
Slightly volatile
Current Assets20.8 B20 B
Sufficiently Up
Increasing
Slightly volatile
Assets Non Current28.5 B30.1 B
Notably Down
Increasing
Slightly volatile
Current Liabilities15.2 B14 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current17.3 B18.5 B
Notably Down
Increasing
Slightly volatile
Total Debt10 B11.5 B
Fairly Down
Increasing
Slightly volatile
Debt Current1.2 BB
Fairly Up
Increasing
Slightly volatile
Debt Non CurrentB10.5 B
Fairly Down
Increasing
Slightly volatile
Operating Income4.4 B4.2 B
Notably Up
Increasing
Slightly volatile
Gross Margin0.150.15
Steady
Decreasing
Slightly volatile

General Dynamics Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between General Dynamics' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards General Dynamics in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find General Dynamics' degree of accounting gimmicks and manipulations.

About General Dynamics Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Cost of Revenue

32.86 Billion

Share
General Dynamics Cost of Revenue is projected to increase significantly based on the last few years of reporting. The past year's Cost of Revenue was at 32.06 Billion

General Dynamics Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as General Dynamics. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues30.97 B36.19 B39.35 B37.92 B38.47 B39.76 B
Total Assets35.05 B45.41 B49.35 B51.31 B50.07 B49.32 B
Current Assets18.33 B18.19 B20.29 B21.54 B19.99 B20.84 B
Assets Non Current16.72 B27.22 B29.06 B29.77 B30.09 B28.48 B
Total Liabilities23.61 B33.68 B35.37 B35.65 B32.43 B32.54 B
Current Liabilities13.1 B14.74 B16.8 B15.96 B13.98 B15.21 B
Total Debt3.98 B12.42 B11.93 B13 B11.49 B10.04 B
Debt Current2 M973 M2.92 B3 B1 B1.16 B
Debt Non Current3.98 B11.44 B9.01 B9.99 B10.49 B8.99 B
Operating Income4.24 B4.39 B4.57 B4.13 B4.16 B4.39 B

About General Dynamics Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze General Dynamics Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of General Dynamics using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of General Dynamics Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment designs, manufactures, and sells business jets and offers aircraft maintenance and repair, management, charter, aircraft-on-ground support and completion, staffing, and fixed-base operator services. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy and Jones Act ships for commercial customers, as well as builds crude oil and product tankers, and container and cargo ships. This segment also provides navy ships maintenance and modernization services lifecycle support and repair services for navy surface ships and program management, planning, engineering, and design support services for submarines and surface ships. The Combat Systems segment manufactures land combat solutions, such as wheeled and tracked combat vehicles, Stryker wheeled combat vehicles, piranha vehicles, weapons systems, munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, armored vehicles, and armaments. This segment also offers modernization programs, engineering, support, and sustainment services. The Technologies segment provides information technology solutions and mission support services mobile communication, computers, and command-and-control mission systems and intelligence, surveillance, and reconnaissance solutions to military, intelligence, and federal civilian customers. This segment also offers cloud computing, artificial intelligence machine learning big data analytics development, security, and operations software-defined networks everything-as-a-service defense enterprise office system solutions and unmanned undersea vehicle manufacturing and assembly services. General Dynamics Corporation was founded in 1899 and is headquartered in Reston, Virginia.

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Please check General Dynamics Piotroski F Score and General Dynamics Altman Z Score analysis. Note that the General Dynamics Corp information on this page should be used as a complementary analysis to other General Dynamics' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

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Is General Dynamics' industry 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 YOY
0.052
Market Capitalization
62.2 B
Return On Assets
0.0543
Return On Equity
0.2
The market value of General Dynamics Corp 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 General Dynamics value 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.