Granite Construction Incorporated (GVA)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,977,110 | 6,602,500 | 6,066,260 | 7,107,650 | 6,891,540 |
| Total assets | US$ in thousands | 2,813,540 | 2,167,930 | 2,494,930 | 2,380,000 | 2,502,090 |
| Total asset turnover | 2.48 | 3.05 | 2.43 | 2.99 | 2.75 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,977,110K ÷ $2,813,540K
= 2.48
Granite Construction Inc. has shown fluctuations in its total asset turnover ratio over the past five years. In 2023, the total asset turnover ratio decreased to 1.25 from 1.52 in the previous year, indicating that the company generated $1.25 in revenue for every dollar of assets held. This decline may suggest that Granite Construction Inc. was less efficient in utilizing its assets to generate sales in 2023 compared to 2022.
The company's total asset turnover ratio in 2021 was 1.21, which was lower compared to 2020 and 2019, where the ratios were 1.50 and 1.38, respectively. The lower ratio in 2021 could indicate that there was a decrease in the company's ability to generate revenue from its assets during that year.
Overall, the fluctuating trend in Granite Construction Inc.'s total asset turnover ratio over the years suggests varying levels of efficiency in utilizing its assets to generate sales. Further analysis of the company's operations and financial performance would be necessary to determine the underlying factors contributing to these changes in asset turnover.
Peer comparison
Dec 31, 2023