Financial Statement Analysis: General Dynamics Corp & RTX Corp (2021-2023), Assignments of Financial Accounting

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ACC370 financial Statement Analysis

General Dynamics Corp

Company Name and ticker symbol:

Industry:

Products or services offered:

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General Dynamics Corp

General Dynamic Corp (GD)

Aerospace and Defense

Military vehicles

Weapons systems, armament and munitions

Engineering and other services

Marine systems

Aircraft manufacturing

Aircraft services

IT services

C5ISR solutions

Raytheon

BAE Systems

RTX

Boeing

Lockheed Martin

Northrop Grumman

GENERAL DYNAMICS CORP

Consolidated Balance sheet

As of December 31, 2023, December 31, 2022, and December 31, 2021

(Dollars in millions)

As of 31-Dec Dec. 31, 2023Dec. 31, 2022Dec. 31, 2021 ASSETS Current assets: Cash and equivalents $ 1,913.00 $ 1,242.00 $^ 1,603. Accounts receivable 3,004.00 3,008.00 3,041. Unbilled receivables 7,997.00 8,795.00 8,498. Inventories 8,578.00 6,322.00 5,340. Other current assets 2,123.00 1,696.00 1,505. Total current assets 23,615.00 21,063.00 19,987. Noncurrent assets: Property, plant and equipment, net 6,198.00 5,900.00 5,417. Intangible assets, net 1,656.00 1,824.00 1,978. Goodwill 20,586.00 20,334.00 20,098. Other assets 2,755.00 2,464.00 2,593. Total noncurrent assets 31,195.00 30,522.00 30,086. Total assets $54,810.00 $51,585.00 $50,073. LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt and current portion of long-term debt 507.00 1,253.00 1,005. Accounts payable 3,095.00 3,398.00 3,167. Customer advances and deposits 9,564.00 7,436.00 6,266. Other current liabilities 3,266.00 3,254.00 3,540. Total current liabilities 16,432.00 15,341.00 13,978. Noncurrent liabilities: Long-term debt 8,754.00 9,243.00 10,490. Other liabilities 8,325.00 8,433.00 7,964. Commitments and contingencies (see Note M) Total noncurrent liabilities 17,079.00 17,676.00 18,454. Shareholders' equity: Common stock 482.00 482.00 482. Surplus 3,760.00 3,556.00 3,278. Retained earnings 39,270.00 37,403.00 35,420. Treasury stock (21,054.00) (20,721.00) (19,619.00) Accumulated other comprehensive loss (1,159.00) (2,152.00) (1,920.00) Total shareholders' equity 21,299.00 18,568.00 17,641. Total liabilities and shareholders' equity $54,810.00 $51,585.00 $50,073.

GENERAL DYNAMICS CORP Consolidated statement of cash flows As of December 31, 2023, December 31, 2022, and December 31, 2021 (Dollars in millions) For the Year ended December- Dec. 31, 202Dec. 31, 202Dec. 31, 2021

Cash flows from operating activities - continuing Operations

Net earnings $ 3,315.00 $ 3,390.00 $ 3,257.

Adjustments to reconcile net earnings to net cash from

operating activities:

Depreciation of property, plant and equipment 608.00 586.00 568.

Amortization of intangible and finance lease

right-of-use assets 255.00 298.00 322.

Equity-based compensation expense 181.00 165.00 126.

Deferred income tax benefit (177.00) (178.00) (66.00)

(Increase) decrease in assets, net of effects of business acquisitions:

Accounts receivable 38.00 46.00 138.

Unbilled receivables 913.00 (256.00) (410.00)

Inventories (2,219.00) (980.00) 405.

Increase (decrease) in liabilities, net of effects of business acquisitions:

Accounts payable (303.00) 224.00 194.

Customer advances and deposits 2,415.00 2,082.00 354.

Income taxes payable (209.00) (436.00) (45.00)

Other, net (107.00) (362.00) (572.00)

Net cash provided by operating activities 4,710.00 4,579.00 4,271.

Cash flows from investing activities:

Capital expenditures (904.00) (1,114.00) (887.00)

Other, net (37.00) (375.00) 5.

Net cash used by investing activities (941.00) (1,489.00) (882.00)

Cash flows from financing activities:

Dividends paid (1,428.00) (1,369.00) (1,315.00)

Repayment of fixed-rate notes (1,250.00) (1,000.00) (2,500.00)

Purchases of common stock (434.00) (1,229.00) (1,828.00)

Proceeds from commercial paper, gross (maturities

greater than 3 months) - - 1,997.

Repayment of commercial paper, gross (maturities

greater than 3 months) - - (1,997.00)

Proceeds from fixed-rate notes - - 1,497.

Repayment of floating-rate notes - - (500.00)

Other, net 18.00 127.00 56.

Net cash used by financing activities (3,094.00) (3,471.00) (4,590.00)

Net cash (used) provided by discontinued operations (4.00) 20.00 (20.00)

Net increase (decrease) increase in cash and equivalents 671.00 (361.00) (1,221.00)

Cash and equivalents at beginning of year 1,242.00 1,603.00 2,824.

Cash and equivalents at end of year 1,913.00 1,242.00 1,603.

RTX CORPORATION

Consolidated Balance sheet

As of December 31, 2023, December 31, 2022, and December 31, 2021

(dollars in millions; shares in thousands)

As at 31-Dec

Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2021

Assets Current assets Cash and cash equivalents $ 6,587.00 $ 6,220.00 $ 7,832. Accounts receivable, net 10,838.00 9,108.00 9,661. Contract assets 12,139.00 11,534.00 11,361. Inventory, net 11,777.00 10,617.00 9,178. Other assets, current 7,076.00 4,964.00 4,018. Total current assets 48,417.00 42,443.00 42,050. Customer financing assets 2,392.00 2,603.00 2,848. Fixed assets, net 15,748.00 15,170.00 14,972. Operating lease right-of-use assets 1,638.00 1,829.00 1,958. Goodwill 53,699.00 53,840.00 54,436. Intangible assets, net 35,399.00 36,823.00 38,516. Other assets 4,576.00 6,156.00 6,624. Total assets $ 161,869 $ 158,864 $ 161, Liabilities, Redeemable Noncontrolling Interest, and Equity Current liabilities Short-term borrowings 189.00 625.00 134. Accounts payable 10,698.00 9,896.00 8,751. Accrued employee compensation 2,491.00 2,401.00 2,658. Other accrued liabilities 14,917.00 10,999.00 10,162. Contract liabilities 17,183.00 14,598.00 13,720. Long-term debt currently due 1,283.00 595.00 24. Total current liabilities 46,761.00 39,114.00 35,449. Long-term debt 42,355.00 30,694.00 31,327. Operating lease liabilities, non-current 1,412.00 1,586.00 1,657. Future pension and postretirement benefit obligations 2,385.00 4,807.00 7,855. Other long-term liabilities 7,511.00 8,449.00 10,417. Total liabilities 100,424.00 84,650.00 86,705. Commitments and contingencies (Note 17) Redeemable noncontrolling interest 35.00 36.00 35. Shareowners’ equity: Capital stock: Preferred stock, $ 1 par value; 250,000 shares authorized; None issued or outsta - - - Common stock, $ 1 par value; 4,000,000 shares authorized; 1,712,717 and 1,71 37,055.00 37,939.00 37,483. Treasury stock, 385,810 and 244,720 common shares at average cost (26,977.00) (15,530.00) (12,727.00) Retained earnings 52,154.00 52,269.00 50,265. Unearned ESOP shares (15.00) (28.00) (38.00) Accumulated other comprehensive loss (2,419.00) (2,018.00) (1,915.00) Total shareowners’ equity 59,798.00 72,632.00 73,068. Noncontrolling interest 1,612.00 1,546.00 1,596. Total equity 61,410.00 74,178.00 74,664. Total liabilities, redeemable noncontrolling interest, and equity $161,869.00 $158,864.00 $161,404.

RTX CORPORATION

Consolidated statement of cash flows

As of December 31, 2023, December 31, 2022, and December 31, 2021

(Dollars in millions)

For the Year ended December-

Dec. 31, 202 Dec. 31, 202Dec. 31, 2021

Operating Activities: Net income from continuing operations $ 3,380.00 $ 5,327.00 $ 4,145. Depreciation and amortization 4,211.00 4,108.00 4,557. Deferred income tax benefit (402.00) (1,663.00) (88.00) Stock compensation cost 425.00 420.00 442. Net periodic pension and other postretirement income (1,555.00) (1,413.00) (1,414.00) Debt extinguishment costs - - 649. Change in: Accounts receivable (1,805.00) 437.00 (570.00) Contract assets (753.00) (234.00) (1,594.00) Inventory (1,104.00) (1,575.00) 163. Other current assets (1,161.00) (1,027.00) (566.00) Accounts payable and accrued liabilities 4,016.00 2,075.00 917. Contract liabilities 2,322.00 846.00 1,372. Other operating activities, net 309.00 (133.00) (871.00) 7,883.00 7,168.00 7,142. Investing Activities: Capital expenditures (2,415.00) (2,288.00) (2,134.00) Payments on customer financing assets (117.00) (150.00) (231.00) Receipts from customer financing assets 212.00 179.00 389. Investments in businesses — (66.00) (1,088.00) Dispositions of businesses, net of cash transferred 6.00 94.00 1,879. Increase in other intangible assets (751.00) (487.00) (308.00) 14.00 (205.00) (16.00) Other investing activities, net 12.00 94.00 145. (3,039.00) (2,829.00) (1,364.00) Financing Activities: Proceeds from long-term debt 12,914.00 1.00 4,062. Repayment of long-term debt (578.00) (3.00) (4,254.00) Proceeds from bridge loan 10,000.00 - - Repayment of bridge loan (10,000.00) - - Debt extinguishment costs - - (649.00) Change in commercial paper, net (Note 9) (524.00) 518.00 (160.00) Change in other short-term borrowings, net 87.00 (29.00) 47. Dividends paid on common stock (3,239.00) (3,128.00) (2,957.00) Repurchase of common stock (12,870.00) (2,803.00) (2,327.00) Net transfers to discontinued operations - - (71.00) Other financing activities, net (317.00) (415.00) (447.00) (4,527.00) (5,859.00) (6,756.00) Discontinued Operations: Net cash used in operating activities - - (71.00) Net cash used in investing activities - - - Net cash provided by financing activities - - 71. Net cash used in discontinued operations - - - 18.00 (42.00) (1.00) 335.00 (1,562.00) (979.00) 6,291.00 7,853.00 8,832. Cash, cash equivalents and restricted cash, end of year 6,626.00 6,291.00 7,853. 39.00 71.00 21. Cash and cash equivalents, end of year 6,587.00 6,220.00 7,832.

Supplemental Disclosure of Cash Flow Information ( :

Interest paid, net of amounts capitalized 1,464.00 1,263.00 1,339. Income taxes paid, net of refunds 1,527.00 2,400.00 1,124. Adjustments to reconcile net income from continuing operations to net cash flows provided by operating activities: Net cash flows provided by operating activities from continuing operations Receipts (payments) from settlements of derivative contracts, net Net cash flows used in investing activities from continuing operations Net cash flows used in financing activities from continuing operations Effect of foreign exchange rate changes on cash and cash equivalents from continuing operations Net increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, beginning of year Less: Restricted cash, included in Other assets, current and Other assets

ber 31, 2021

d December 31

Dec. 31, 2021

The Boeing Company and Subsidiaries Consolidated Balance sheet As of December 31, 2023, December 31, 2022, and December 31, 2021 (dollars in millions; shares in thousands) As of 31-Dec Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2021 Assets Current Assets Cash and cash equivalents $ 12,691.00 $ 14,614.00 $ 8,052. Short-term and other investments 3,274.00 2,606.00 8,192. Accounts receivable, net 2,649.00 2,517.00 2,641. Unbilled receivables, net 8,317.00 8,634.00 8,620. Current portion of financing receivables, net 99.00 154.00 117. Inventories 79,741.00 78,151.00 78,823. Other current assets, net 2,504.00 2,847.00 2,221. Total current assets 109,275.00 109,523.00 108,666. Financing receivables and operating lease equipment, net 860.00 1,450.00 1,695. Property, plant and equipment, net 10,661.00 10,550.00 10,918. Goodwill 8,093.00 8,057.00 8,068. Acquired intangible assets, net 2,094.00 2,311.00 2,562. Deferred income taxes 59.00 63.00 77. Investments 1,035.00 983.00 975. 4,935.00 4,163.00 5,591. Total assets $ 137,012 $ 137,100 $ 138, Liabilities and equity 0 0 Accounts payable 11964 10200 9261 Accrued liabilities 22,331.00 21,581.00 18,455. Advances and progress billings 56,328.00 53,081.00 52,980. Short-term debt and current portion of long-term debt 5,204.00 5,190.00 1,296. Total current liabilities 95,827.00 90,052.00 81,992. Deferred income taxes 229.00 230.00 218. Accrued retiree health care 2,233.00 2,503.00 3,528. Accrued pension plan liability, net 6,516.00 6,141.00 9,104. Other long-term liabilities 2,332.00 2,211.00 1,750. Long-term debt 47,103.00 51,811.00 56,806. Total liabilities 154,240.00 152,948.00 153,398. Shareholders’ equity: - - 5,061.00 5,061.00 5,061. Additional paid-in capital 10,309.00 9,947.00 9,052. Treasury stock, at cost (49,549.00) (50,814.00) (51,861.00) Retained earnings 27,251.00 29,473.00 34,408. Accumulated other comprehensive loss (10,305.00) (9,550.00) (11,659.00) Total shareholders’ deficit (17,233.00) (15,883.00) (14,999.00) Noncontrolling interests 5.00 35.00 153. Total equity (17,228.00) (15,848.00) (14,846.00) Total liabilities and equity $137,012.00 $137,100.00 $138,552. Other assets, net of accumulated amortization of $1,046 and $ Common stock, par value $5.00 – 1,200,000,000 shares authorized; 1,012,261,159 shares issued

GENERAL DYNAMICS CORP

Historical Ratios Competitor Ratio Analysis

For the years ended 31 Dec 2023, 2022, 2021

2023 2022 2021 RTX Boeing Industry Average

Liquidity

Current Ratio 1.44 1.37 1.43 1.04 1.14 1.

Quick Ratio 0.79 0.85 0.94 0.37 0.28 0.

Leverage Ratios

Debt to Total Assets Ratio 0.17 0.20 0.23 0.27 0.38 -

Debt to Equity Ratio 0.43 0.57 0.65 0.71 (3.04) 0.

Long-Term Debt to Equity 0.41 0.50 0.59 0.69 (2.73) -

Times Interest Earned Ratio 12.38 11.57 9.82 2.37 (0.31) 9.

Activity Ratios

Inventory Turnover 2.76 3.26 3.47 3.88 0.76 2.

Fixed Assets Turnover 1.37 1.30 1.28 4.46 7.

Total Assets Turnover 0.79 0.78 0.77 0.43 0.57 0.

Accounts Receivable Turnover 14.06 13.03 12.65 6.91 30.12 9.

Accounts Payables Turnover 10.97 9.99 10.12 10.

Average Collection Period 25.96 28.01 28.85 52.82 12.12 38.

Profitability Ratios

Gross Profit Margin 15.78% 16.80% 16.66% 17.54% 9.93% 20.56%

Operating Profit Margin 10.04% 10.69% 10.82% 5.17% -0.99% 7.30%

Net Profit Margin 7.84% 8.60% 8.47% 4.90% -2.88% 3.87%

Return on Total Assets (ROA) 6.23% 6.52% 6.62% 2.11% -1.64% 3.08%

Return on Stockholders' Equity 16.63% 18.31% 18.79% 4.99% 13.56% 22.08%

Earnings Per Share (EPS) 12.14 12.31 11.61 2.24 (3.67)

Price Earnings Ratio 20.86 19.20 16.73 36.70 (57.17) 53.

GENERAL DYNAMICS CORP Common Sized Balance sheet As of December 31, 2023, December 31, 2022, and December 31, 2021 As of 31-Dec Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2021 ASSETS Current assets: Cash and equivalents 3.5% 2.4% 3.2% Accounts receivable 5.5% 5.8% 6.1% Unbilled receivables 14.6% 17.0% 17.0% Inventories 15.7% 12.3% 10.7% Other current assets 3.9% 3.3% 3.0% Total current assets 43.1% 40.8% 39.9% Noncurrent assets: Property, plant and equipment, net 11.3% 11.4% 10.8% Intangible assets, net 3.0% 3.5% 4.0% Goodwill 37.6% 39.4% 40.1% Other assets 5.0% 4.8% 5.2% Total noncurrent assets 56.9% 59.2% 60.1% Total assets 100.0% 100.0% 100.0% LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt and current portion of long-term debt 0.9% 2.4% 2.0% Accounts payable 5.6% 6.6% 6.3% Customer advances and deposits 17.4% 14.4% 12.5% Other current liabilities 6.0% 6.3% 7.1% Total current liabilities 30.0% 29.7% 27.9% Noncurrent liabilities: Long-term debt 16.0% 17.9% 20.9% Other liabilities 15.2% 16.3% 15.9% Commitments and contingencies (see Note M) 0.0% 0.0% 0.0% Total noncurrent liabilities 31.2% 34.3% 36.9% Shareholders' equity: Common stock 0.9% 0.9% 1.0% Surplus 6.9% 6.9% 6.5% Retained earnings 71.6% 72.5% 70.7% Treasury stock -38.4% -40.2% -39.2% Accumulated other comprehensive loss -2.1% -4.2% -3.8% Total shareholders' equity 38.9% 36.0% 35.2% Total liabilities and shareholders' equity 100.0% 100.0% 100.0%

GENERAL DYNAMICS CORP Consolidated Balance sheet As of December 31, 2023, December 31, 2022, and December 31, 2021 (Dollars in millions) As of Dec. 31, 2023 Dollar Change % Change Dec. 31, 2022 Dollar Change % Change Dec. 31, 2022 ASSETS Current assets: Cash and equivalents $ 1,913.00 $ 671.00 54.03% $ 1,242.00 $ (361.00) -22.52% $ 1,603. Accounts receivable 3,004.00 (4.00) -0.13% 3,008.00 (33.00) -1.09% 3,041. Unbilled receivables 7,997.00 (798.00) -9.07% 8,795.00 297.00 3.49% 8,498. Inventories 8,578.00 2,256.00 35.68% 6,322.00 982.00 18.39% 5,340. Other current assets 2,123.00 427.00 25.18% 1,696.00 191.00 12.69% 1,505. Total current assets 23,615.00 2,552.00 12.12% 21,063.00 1,076.00 5.38% 19,987. Noncurrent assets: Property, plant and equipment, net 6,198.00 298.00 5.05% 5,900.00 483.00 8.92% 5,417. Intangible assets, net 1,656.00 (168.00) -9.21% 1,824.00 (154.00) -7.79% 1,978. Goodwill 20,586.00 252.00 1.24% 20,334.00 236.00 1.17% 20,098. Other assets 2,755.00 291.00 11.81% 2,464.00 (129.00) -4.97% 2,593. Total noncurrent assets 31,195.00 673.00 2.20% 30,522.00 436.00 1.45% 30,086. Total assets $ 54,810.00 $ 3,225.00 6.25% $ 51,585.00 $ 1,512.00 3.02% $ 50,073. LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt and current portion of long-term debt 507.00 (746.00) -59.54% 1,253.00 248.00 24.68% 1,005. Accounts payable 3,095.00 (303.00) -8.92% 3,398.00 231.00 7.29% 3,167. Customer advances and deposits 9,564.00 2,128.00 28.62% 7,436.00 1,170.00 18.67% 6,266. Other current liabilities 3,266.00 12.00 0.37% 3,254.00 (286.00) -8.08% 3,540. Total current liabilities 16,432.00 1,091.00 7.11% 15,341.00 1,363.00 9.75% 13,978. Noncurrent liabilities: Long-term debt 8,754.00 (489.00) -5.29% 9,243.00 (1,247.00) -11.89% 10,490. Other liabilities 8,325.00 (108.00) -1.28% 8,433.00 469.00 5.89% 7,964. Commitments and contingencies (see Note M) - - - - - Total noncurrent liabilities 17,079.00 (597.00) -3.38% 17,676.00 (778.00) -4.22% 18,454. Shareholders' equity: 0 Common stock 482.00 0.00% 482.00 0.00% 482. Surplus 3,760.00 204.00 5.74% 3,556.00 278.00 8.48% 3,278. Retained earnings 39,270.00 1,867.00 4.99% 37,403.00 1,983.00 5.60% 35,420. Treasury stock (21,054.00) (333.00) 1.61% (20,721.00) (1,102.00) 5.62% (19,619.00) Accumulated other comprehensive loss (1,159.00) 993.00 -46.14% (2,152.00) (232.00) 12.08% (1,920.00) Total shareholders' equity 21,299.00 2,731.00 14.71% 18,568.00 927.00 5.25% 17,641. Total liabilities and shareholders' equity $ 54,810.00 $ 3,225.00 6.25% $ 51,585.00 $ 1,512.00 3.02% $ 50,073.

GENERAL DYNAMICS CORP

Historical Analysis of Income statements As of December 31, 2023, December 31, 2022, and December 31, 2021 (Dollars in millions, except per-share amounts) For the Year Ended December 31 Dec. 31, 2023 Dollar Change % change Dec. 31, 2022 Dollar Change % change Dec. 31, 2021 Revenue: Products 24,595.00 1,573.00 6.8% 23,022.00 594.00 2.6% 22,428. Services 17,677.00 1,292.00 7.9% 16,385.00 344.00 2.1% 16,041. 42,272.00 2,865.00 7.3% 39,407.00 938.00 2.4% 38,469. Operating costs and expenses: - Products (20,591.00) (1,610.00) 8.5% (18,981.00) (457.00) 2.5% (18,524.00) Services (15,009.00) (1,205.00) 8.7% (13,804.00) (267.00) 2.0% (13,537.00) General and administrative (G&A) (2,427.00) (16.00) 0.7% (2,411.00) (166.00) 7.4% (2,245.00) (38,027.00) (2,831.00) 8.0% (35,196.00) (890.00) 2.6% (34,306.00) Operating earnings 4,245.00 34.00 0.8% 4,211.00 48.00 1.2% 4,163. Other, net 82.00 (107.00) -56.6% 189.00 55.00 41.0% 134. Interest, net (343.00) 21.00 -5.8% (364.00) 60.00 -14.2% (424.00) Earnings before income tax 3,984.00 (52.00) -1.3% 4,036.00 163.00 4.2% 3,873. Provision for income tax, net (669.00) (23.00) 3.6% (646.00) (30.00) 4.9% (616.00) Net earnings 3,315.00 (75.00) -2.2% 3,390.00 133.00 4.1% 3,257.

GENERAL DYNAMICS CORP Projected Balance sheet As of December 31, 2024, December 31, 2025, and December 31, 2026 (Dollars in millions) As of 31-Dec Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2026 ASSETS Current assets: Cash and equivalents $ 861.24 $ 665.50 $ 470. Accounts receivable 3,350.54 3,518.06 3,693. Unbilled receivables 9,315.95 9,781.74 10,270. Inventories 6,770.85 7,109.40 7,464. Other current assets 2,793.75 2,900.57 3,014. Total current assets 23,092.33 23,975.27 24,914. Noncurrent assets: Property, plant and equipment, net 6,258.98 6,498.30 6,752. Intangible assets, net 1,959.44 2,034.36 2,114. Goodwill 21,839.57 22,674.62 23,562. Other assets 2,793.75 2,900.57 3,014. Total noncurrent assets 32,851.75 34,107.85 35,444. Total assets $ 55,944.07 $ 58,083.13 $ 60,358. LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt and current portion of long-term debt $915.41 $948.55 $982. Accounts payable 3,581.50 3,760.57 3,948. Customer advances and deposits 8,396.44 8,816.26 9,257. Other current liabilities 3,278.04 3,290.13 3,302. Total current liabilities 16,171.39 16,815.52 17,490. Noncurrent liabilities: Long-term debt 7,838.59 6,890.04 5,907. Other liabilities 8,516.82 8,713.06 8,913. Commitments and contingencies (see Note M) Total noncurrent liabilities 16,355.41 15,603.10 14,820. Shareholders' equity: Common stock 482.00 482.00 482. Surplus 3,760.00 3,760.00 3,760. Retained earnings 41,388.27 43,635.51 46,017. Treasury stock (21,054.00) (21,054.00) (21,054.00) Accumulated other comprehensive loss (1,159.00) (1,159.00) (1,159.00) Total shareholders' equity 23,417.27 25,664.51 28,046. Total liabilities and shareholders' equity $ 55,944.07 $ 58,083.13 $ 60,358. Key Ratios Debt Interpolation 3-year Average Long-term Debt Short-term debt interest Rate Accounts Payable 10.36 10,490.00 1,005.00 (424) -3.69% Accounts Receivable 13.25 9,243.00 1,253.00 (364) -3.47% Inventory turnover 3.16 8,754.00 507.00 (343) -3.70% Customer advances and deposits turnover 5.29 Average Rate -3.62% Growth in; Interpolated Amortization Other current liabilities 0.4% 10,490. Other liabiltiies 2.3% $1,232.31 (379.75) $852.57 9,637. $1,232.31 (348.88) $883.43 8,754. 3-year average $1,232.31 (316.90) $915.41 7,838. Property, plant and equipment, net to total assets 11.2% $1,232.31 (283.76) $948.55 6,890. Intangible assets, net to total assets 3.5% $1,232.31 (249.43) $982.89 5,907. Goodwill to assets 39.0% $1,232.31 (213.84) $1,018.47 4,888. Other assets to total assets 5.0% $1,232.31 (176.97) $1,055.34 3,833. Total noncurrent assets to total assets 58.7% $1,232.31 (138.77) $1,093.55 2,739. $1,232.31 (99.18) $1,133.13 1,606. Unbilled receivables turnover 4.76 $1,232.31 (58.16) $1,174.15 432. Other assets to total assets 5% Link Dividends Payout 40.43% Dividend Payout Ratio Assumptions

1. There is no new sale or purchase of stock for the next three years. 2. There is no increase or decrease in the accumulated OCI

GENERAL DYNAMICS CORP

Consolidated statement of cash flows

As of December 31, 2023, December 31, 2022, and December 31, 2021

(Dollars in millions)

For the Year ended December-

Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2026

Cash flows from operating activities - continuing Operations

Net earnings $ 3,555.94 $ 3,772.43 $ 3,999.

Adjustments to reconcile net earnings to net cash from

operating activities:

Depreciation of property, plant and equipment 630.64 654.75 680.

Amortization of intangible and finance lease

right-of-use assets

Equity-based compensation expense

Deferred income tax benefit

(Increase) decrease in assets, net of effects of business acquisitions:

Accounts receivable (346.54) (167.53) (175.90)

Unbilled receivables (1,318.95) (465.80) (489.09)

Inventories 1,807.15 (338.54) (355.47)

Other current assets (670.75) (106.82) (113.64)

Increase (decrease) in liabilities, net of effects of business acquisitions:

Accounts payable 486.50 179.07 188.

Customer advances and deposits (1,167.56) 419.82 440.

Other current liabilities 12.04 12.09 12.

Net cash provided by operating activities 2,988.47 3,959.48 4,186.

Cash flows from investing activities:

Capital expenditures (691.63) (894.07) (935.00)

Other, net (1,595.76) (1,016.79) (1,081.71)

Net cash used by investing activities (2,287.39) (1,910.86) (2,016.71)

Cash flows from financing activities:

Dividends paid (1,437.67) (1,525.19) (1,616.95)

Repayment of fixed-rate notes (507.00) (915.41) (948.55)

Proceeds from other liabilities 191.82 196.24 200.

Proceeds from fixed-rate notes - -

Repayment of floating-rate notes - -

Net cash used by financing activities (1,752.84) (2,244.37) (2,364.74)

Net cash (used) provided by discontinued operations

Net increase (decrease) increase in cash and equivalents (1,051.76) (195.74) (194.78)

Cash and equivalents at beginning of year 1,913.00 861.24 665.

Cash and equivalents at end of year 861.24 665.50 470.

3-year average

Depreciation to Net PPE 10.08%