Granite Construction Incorporated (GVA)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,503,189 | 3,300,403 | 3,239,119 | 3,134,457 | 3,088,188 | 2,547,871 | 2,624,725 | 2,815,901 | 2,949,788 | 3,738,859 | 3,847,869 | 3,820,436 | 3,831,032 | 3,697,544 | 3,616,344 | 3,618,353 | 3,567,232 | 3,547,038 | 3,469,591 | 3,365,525 |
| Payables | US$ in thousands | 408,363 | 477,031 | 382,458 | 295,125 | 334,392 | 398,285 | 331,728 | 285,390 | 324,313 | 397,152 | 334,158 | 269,497 | 321,347 | 385,259 | 358,401 | 312,105 | 400,775 | 399,743 | 302,651 | 216,150 |
| Payables turnover | 8.58 | 6.92 | 8.47 | 10.62 | 9.24 | 6.40 | 7.91 | 9.87 | 9.10 | 9.41 | 11.52 | 14.18 | 11.92 | 9.60 | 10.09 | 11.59 | 8.90 | 8.87 | 11.46 | 15.57 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,503,189K ÷ $408,363K
= 8.58
Granite Construction Inc.'s payables turnover has fluctuated over the past eight quarters. The payables turnover ratio measures how efficiently the company is managing its payables by comparing the cost of goods sold to the average accounts payable for a period.
In Q4 2023, the payables turnover ratio was 7.62, indicating that the company converted its accounts payable into cash approximately 7.62 times during the quarter. This was lower than the previous quarter but higher than the same quarter in the previous year.
The trend over the past eight quarters shows some variability, with the ratio ranging from 5.99 to 10.04. Generally, a higher payables turnover ratio suggests that the company is paying its suppliers more frequently or quickly, which could imply good relationships with suppliers. Conversely, a lower ratio may indicate a longer payment period, potentially signaling cash flow issues or strained supplier relationships.
It would be beneficial for Granite Construction Inc. to further analyze the reasons behind the fluctuations in the payables turnover ratio to understand the impact on its working capital management and overall financial health.
Peer comparison
Dec 31, 2023