Granite Construction Incorporated (GVA)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,007,578 | 3,963,973 | 3,805,283 | 3,621,345 | 3,509,138 | 3,364,653 | 3,257,643 | 3,127,377 | 3,114,895 | 3,008,878 | 3,061,198 | 3,257,084 | 3,379,411 | 3,641,787 | 3,644,847 | 3,596,446 | 3,562,460 | 3,437,851 | 3,460,771 | 3,334,540 |
| Total current assets | US$ in thousands | 1,716,660 | 1,814,100 | 1,706,170 | 1,418,110 | 1,643,450 | 1,695,050 | 1,491,190 | 1,246,240 | 1,347,300 | 1,579,690 | 1,593,280 | 1,592,730 | 1,827,400 | 1,665,430 | 1,566,430 | 1,450,740 | 1,455,250 | 1,545,300 | 1,423,940 | 1,301,060 |
| Total current liabilities | US$ in thousands | 1,031,960 | 1,164,830 | 1,016,400 | 936,435 | 1,029,880 | 1,056,480 | 867,234 | 723,367 | 797,594 | 1,040,980 | 994,246 | 939,254 | 1,069,320 | 1,100,350 | 1,048,280 | 1,000,140 | 943,256 | 974,593 | 889,600 | 809,562 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,007,578K ÷ ($1,716,660K – $1,031,960K)
= 5.85
Granite Construction Incorporated's working capital turnover has shown fluctuations over the period analyzed. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue.
From March 31, 2020, to December 31, 2020, the company's working capital turnover ranged from 6.02 to 6.96, indicating a relatively stable performance. However, in the following quarters, the ratio experienced more variability, with values ranging from 4.46 to 7.98.
The working capital turnover peaked at 7.98 on March 31, 2021, signifying a significant increase in efficiency in utilizing working capital to generate sales. Subsequently, the ratio decreased but remained above the initial levels.
From June 30, 2023, to September 30, 2024, the working capital turnover ranged between 5.22 and 6.11, reflecting a moderate level of efficiency in managing working capital during this period.
Overall, while there have been fluctuations, Granite Construction Incorporated has generally maintained a reasonable level of working capital turnover, indicating effective management of working capital in generating sales revenue.
Peer comparison
Dec 31, 2024