Granite Construction Incorporated (GVA)
Working capital 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 |
| Total current assets | US$ in thousands | 1,643,450 | 1,695,050 | 1,491,190 | 1,246,240 | 1,347,300 | 1,574,380 | 1,586,850 | 1,573,860 | 1,827,400 | 1,665,430 | 1,566,430 | 1,450,740 | 1,455,250 | 1,545,300 | 1,423,940 | 1,301,060 | 1,376,940 | 1,493,290 | 1,377,420 | 1,209,840 |
| Total current liabilities | US$ in thousands | 1,029,880 | 1,056,480 | 867,234 | 723,367 | 797,594 | 1,052,030 | 1,000,080 | 935,666 | 1,069,320 | 1,100,350 | 1,048,290 | 1,000,140 | 943,256 | 974,593 | 889,600 | 809,562 | 842,056 | 876,526 | 839,722 | 675,777 |
| Working capital turnover | 11.36 | 9.21 | 9.08 | 10.44 | 9.88 | 10.19 | 9.25 | 9.12 | 8.00 | 10.99 | 11.99 | 13.57 | 11.81 | 10.69 | 11.52 | 12.03 | 11.00 | 9.55 | 10.82 | 10.96 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,971,350K ÷ ($1,643,450K – $1,029,880K)
= 11.36
Granite Construction Inc.'s working capital turnover has been relatively stable over the past eight quarters, fluctuating between 4.42 and 6.34. The working capital turnover measures how efficiently the company is utilizing its working capital to generate revenue, with a higher ratio indicating better efficiency.
In Q1 2023, Granite Construction Inc. achieved the highest working capital turnover of 6.34, suggesting that for every dollar of working capital, the company generated $6.34 in revenue. This demonstrates effective management of working capital resources to drive revenue generation.
On the other hand, Q2 and Q3 2022 had the lowest working capital turnover ratios of 4.49 and 4.42, respectively, indicating a lower level of efficiency in utilizing working capital to generate revenue during those periods.
Overall, the trend in working capital turnover ratios for Granite Construction Inc. shows that the company has maintained a relatively efficient utilization of working capital to drive revenue generation, with some fluctuations in performance over the past two years.
Peer comparison
Dec 31, 2023