Granite Construction Incorporated (GVA)
Receivables 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 |
| Receivables | US$ in thousands | 598,705 | 743,091 | 636,797 | 397,231 | 463,987 | 618,144 | 527,277 | 380,502 | 464,588 | 684,822 | 543,914 | 393,283 | 437,558 | 661,948 | 596,922 | 477,718 | 547,417 | 712,972 | 564,543 | 380,985 |
| Receivables turnover | 11.64 | 7.91 | 8.90 | 13.74 | 11.71 | 8.61 | 10.29 | 15.29 | 13.05 | 9.07 | 11.43 | 15.55 | 13.82 | 9.22 | 10.31 | 12.37 | 10.74 | 8.26 | 10.31 | 15.36 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,971,350K ÷ $598,705K
= 11.64
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable. For Granite Construction Inc., the receivables turnover ratio has varied over the past eight quarters, ranging from a low of 4.27 to a high of 8.34.
A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more quickly, which is generally seen as a positive sign of efficiency. Conversely, a lower ratio may suggest delays in collecting payments from customers.
In the most recent quarter, Q4 2023, Granite Construction Inc. had a receivables turnover ratio of 5.86, which indicates that the company collected its accounts receivable approximately 5.86 times during the quarter. This represents an improvement from the previous quarter but is lower than the peak seen in Q1 2023.
Overall, while Granite Construction Inc. has shown fluctuations in its receivables turnover ratio over the past year, it is important to consider trends over time and compare the ratio to industry benchmarks to gain a better understanding of the company's efficiency in collecting receivables.
Peer comparison
Dec 31, 2023