Granite Construction Incorporated (GVA)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,971,350 | 5,879,173 | 5,667,503 | 5,458,263 | 5,431,183 | 5,325,166 | 5,427,206 | 5,817,366 | 6,062,166 | 6,209,360 | 6,214,250 | 6,116,400 | 6,046,880 | 6,102,077 | 6,156,537 | 5,911,407 | 5,881,417 | 5,888,155 | 5,819,425 | 5,852,105 |
| Property, plant and equipment | US$ in thousands | 662,864 | 569,722 | 564,077 | 531,457 | 509,210 | 500,827 | 464,593 | 450,250 | 433,504 | 510,658 | 432,896 | 426,953 | 421,149 | 536,256 | 540,053 | 534,958 | 542,297 | 542,796 | 558,378 | 552,504 |
| Fixed asset turnover | 10.52 | 10.32 | 10.05 | 10.27 | 10.67 | 10.63 | 11.68 | 12.92 | 13.98 | 12.16 | 14.36 | 14.33 | 14.36 | 11.38 | 11.40 | 11.05 | 10.85 | 10.85 | 10.42 | 10.59 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,971,350K ÷ $662,864K
= 10.52
Granite Construction Inc.'s fixed asset turnover ratio has shown a fluctuating trend over the past eight quarters, ranging from a low of 5.27 in Q3 2022 to a high of 6.48 in Q4 2022. The ratio measures how efficiently the company generates revenue from its fixed assets, with higher values indicating better utilization of fixed assets to generate sales.
In Q4 2023, the fixed asset turnover was 5.29, which signifies that for every dollar invested in fixed assets, the company generated $5.29 in revenue during that quarter. The ratio increased in Q3 2023 to 6.23, indicating improved efficiency in utilizing fixed assets to generate sales. However, it decreased slightly in Q2 2023 and Q4 2023 to 6.11 and 6.24, respectively.
Overall, the company has shown a relatively strong performance in terms of fixed asset turnover, with most quarters having ratios above 5. This suggests that Granite Construction Inc. is effectively using its fixed assets to generate revenue, although there may be variations in efficiency from quarter to quarter. It is important for the company to continue monitoring and managing its fixed assets to ensure optimal utilization and maintain efficiency in revenue generation.
Peer comparison
Dec 31, 2023