Granite Construction Incorporated (GVA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,977,110 | 6,602,500 | 6,066,260 | 7,107,650 | 6,891,540 |
| Property, plant and equipment | US$ in thousands | 662,864 | 509,210 | 433,504 | 421,149 | 542,297 |
| Fixed asset turnover | 10.53 | 12.97 | 13.99 | 16.88 | 12.71 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,977,110K ÷ $662,864K
= 10.53
Granite Construction Inc.'s fixed asset turnover ratio has shown fluctuations in recent years, ranging from 5.29 in 2023 to a high of 6.94 in 2021. This ratio measures the company's efficiency in generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.
The declining trend in the fixed asset turnover ratio from 2021 to 2023 could suggest a decrease in the company's ability to generate sales relative to its investment in fixed assets. This may raise concerns about the company's operational efficiency and asset utilization. It is important for Granite Construction Inc. to analyze the underlying reasons for this decline and take necessary steps to improve asset productivity and profitability.
Peer comparison
Dec 31, 2023