Granite Construction Incorporated (GVA)

Payables turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 3,487,310 3,274,060 2,949,790 3,831,020 3,567,230
Payables US$ in thousands 408,363 334,392 324,313 321,347 400,775
Payables turnover 8.54 9.79 9.10 11.92 8.90

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,487,310K ÷ $408,363K
= 8.54

Granite Construction Inc.'s payables turnover has exhibited fluctuations over the past five years. The payables turnover ratio indicates how efficiently the company is managing its trade payables. A higher ratio suggests that the company is paying its suppliers more quickly.

In 2023, the payables turnover ratio was 7.62, a decrease from the previous year. This suggests that the company took longer to pay its suppliers in 2023 compared to 2022. The decrease could be due to various factors such as changes in the company's payment terms or slower inventory turnover.

Overall, Granite Construction Inc. has maintained relatively healthy payables turnover ratios over the past five years, indicating effective management of its payables. However, a decreasing trend in the ratio may warrant further investigation to ensure that the company's payment practices remain efficient and sustainable.


Peer comparison

Dec 31, 2023

Company name
Symbol
Payables turnover
Granite Construction Incorporated
GVA
8.54
Fluor Corporation
FLR
12.35
Jacobs Solutions Inc.
J
13.61
KBR Inc
KBR
11.14