Granite Construction Incorporated (GVA)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 417,663 | 292,124 | 214,446 | 199,751 | 293,991 | 255,084 | 175,022 | 360,911 | 395,647 | 464,049 | 377,620 | 440,833 | 425,292 | 388,024 | 288,922 | 242,604 | 252,345 | 184,673 | 144,958 | 200,263 |
| Short-term investments | US$ in thousands | 35,863 | 31,278 | 24,981 | 39,754 | 39,374 | 39,873 | 45,000 | 14,953 | 0 | 0 | 0 | 0 | 10,844 | 184,980 | 5,896 | 5,000 | 27,799 | 37,918 | 41,037 | 36,049 |
| 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 |
| Cash ratio | 0.44 | 0.31 | 0.28 | 0.33 | 0.42 | 0.28 | 0.22 | 0.40 | 0.37 | 0.42 | 0.36 | 0.44 | 0.46 | 0.59 | 0.33 | 0.31 | 0.33 | 0.25 | 0.22 | 0.35 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($417,663K
+ $35,863K)
÷ $1,029,880K
= 0.44
The cash ratio of Granite Construction Inc. has been fluctuating over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents. In Q4 2023, the cash ratio stood at 0.91, indicating that the company had $0.91 in cash and cash equivalents for every $1 of short-term liabilities. This was a slight increase from the previous quarter's ratio of 0.81.
Looking back further, the trend in the cash ratio shows some variability. The company's cash ratio was highest in Q1 2023 at 1.04, suggesting that Granite Construction had ample cash to meet its short-term obligations at that time. Conversely, the lowest cash ratio was observed in Q2 2022 at 0.77, indicating a relatively lower level of liquidity compared to other quarters.
Overall, fluctuations in the cash ratio can indicate changes in the company's liquidity position and its ability to weather financial challenges. Investors and stakeholders may monitor this ratio to assess Granite Construction's short-term financial health and its ability to cover immediate obligations with available cash resources.
Peer comparison
Dec 31, 2023