Granite Construction Incorporated (GVA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 31.75 | 31.93 | 27.93 | 27.39 | 29.96 | 32.19 | 31.52 | 28.60 | 31.90 | 33.32 | 35.12 | 39.25 | 48.86 | 41.79 | 36.55 | 37.09 | 39.07 | 28.30 | 28.07 | 29.99 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 5.85 | 6.11 | 5.52 | 7.52 | 5.72 | 5.27 | 5.22 | 5.98 | 5.67 | 5.59 | 5.11 | 4.98 | 4.46 | 6.44 | 7.03 | 7.98 | 6.96 | 6.02 | 6.48 | 6.78 |
Granite Construction Incorporated's inventory turnover ratio has shown fluctuations over the past few years, ranging from a high of 48.86 in December 2021 to a low of 27.39 in March 2024. The general trend indicates an efficient management of inventory turnover, with the ratio consistently above industry averages.
The receivables turnover ratio, unfortunately, is not available for analysis as it is marked as "—", making it challenging to assess the effectiveness of the company in collecting outstanding payments from its customers.
Similarly, the payables turnover ratio is also unavailable for evaluation, preventing a thorough analysis of the company's efficiency in managing its trade credit.
The working capital turnover ratio showcases variations in the efficiency of the company in utilizing its working capital to generate sales. The ratio ranges from 4.46 in December 2021 to 7.98 in March 2021. Overall, the company's ability to generate sales relative to its working capital has been relatively stable, indicating a consistent operational performance.
In conclusion, Granite Construction Incorporated demonstrates strong inventory turnover and working capital turnover ratios, but the lack of data on receivables and payables turnover limits a comprehensive evaluation of the company's overall activity ratios.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 11.49 | 11.43 | 13.07 | 13.33 | 12.18 | 11.34 | 11.58 | 12.76 | 11.44 | 10.96 | 10.39 | 9.30 | 7.47 | 8.73 | 9.99 | 9.84 | 9.34 | 12.90 | 13.01 | 12.17 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the data provided, let's analyze the activity ratios for Granite Construction Incorporated:
1. Days of Inventory on Hand (DOH):
- The DOH measures how many days it takes for a company to turn its inventory into sales. In the case of Granite Construction Inc., the trend in DOH from March 2020 to December 2024 shows some fluctuations, ranging from a low of 7.47 days to a high of 13.33 days. Generally, a decreasing trend in DOH is favorable, indicating better inventory management efficiency.
2. Days of Sales Outstanding (DSO):
- Unfortunately, the data provided does not include information on DSO for Granite Construction Inc. DSO represents the average number of days it takes a company to collect revenue after a sale. A lower DSO is typically better as it indicates faster collection of accounts receivable.
3. Number of Days of Payables:
- Similarly, the dataset does not include data on the number of days of payables for Granite Construction Inc. This ratio would normally indicate how long the company is taking to pay its suppliers. A longer payment period can be beneficial for cash flow management but may also signal a strain on vendor relationships if stretched too far.
In conclusion, while the information provided allows for an analysis of the Days of Inventory on Hand for Granite Construction Inc., additional data on Days of Sales Outstanding and Number of Days of Payables would provide a more comprehensive understanding of the company's overall activity ratios and working capital management.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 5.37 | 5.78 | 5.88 | 6.12 | 6.01 | 6.00 | 7.23 | 7.00 | 6.40 | 6.32 | 6.81 | 6.05 | 6.41 | 6.41 | 6.23 |
| Total asset turnover | 1.32 | 1.27 | 1.32 | 1.40 | 1.25 | 1.30 | 1.37 | 1.51 | 1.44 | 1.25 | 1.34 | 1.43 | 1.35 | 1.42 | 1.47 | 1.52 | 1.50 | 1.38 | 1.38 | 1.40 |
Fixed Asset Turnover Analysis:
Granite Construction Incorporated's fixed asset turnover ratio has shown some fluctuations over the years. The ratio increased steadily from March 31, 2020, to March 31, 2022, reaching its peak of 7.23. This indicates that the company was generating $7.23 in revenue for every dollar invested in fixed assets at that time. However, the ratio declined slightly in the following periods, showing some inconsistency in the utilization of fixed assets for revenue generation.
Total Asset Turnover Analysis:
The total asset turnover ratio of Granite Construction Incorporated reflects how efficiently the company is using its total assets to generate revenue. The ratio ranged from a low of 1.25 on December 31, 2023, to a high of 1.52 on March 31, 2021. The increase in the ratio from December 31, 2023, to March 31, 2024, indicates improved efficiency in utilizing assets to generate sales.
Overall Analysis:
In conclusion, while the fixed asset turnover ratio fluctuated, indicating varying efficiency in utilizing fixed assets to generate revenue, the total asset turnover ratio showed more stability with some fluctuations. The company may need to focus on optimizing the use of its fixed assets to improve overall operational efficiency and profitability in the long term.