Granite Construction Incorporated (GVA)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,643,450 | 1,347,300 | 1,827,400 | 1,455,250 | 1,376,940 |
| Total current liabilities | US$ in thousands | 1,029,880 | 797,594 | 1,069,320 | 943,256 | 842,056 |
| Current ratio | 1.60 | 1.69 | 1.71 | 1.54 | 1.64 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,643,450K ÷ $1,029,880K
= 1.60
Granite Construction Inc.'s current ratio has experienced fluctuations over the past five years, ranging from 1.54 to 1.71. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than liabilities, which is generally viewed as a positive sign of financial health.
In 2023, Granite Construction Inc.'s current ratio stands at 1.60, showing a slight decline from the previous year's ratio of 1.69. While the current ratio is still above 1, indicating that the company has enough current assets to cover its short-term obligations, a decreasing trend may suggest reduced liquidity or a potential strain on the company's ability to pay off its short-term debts.
It is important for investors and stakeholders to monitor Granite Construction Inc.'s current ratio over time to assess the company's liquidity position and financial stability. Fluctuations in the current ratio could be influenced by changes in the company's current assets and liabilities, and understanding the underlying factors driving these changes is crucial for a comprehensive analysis of the company's financial health.
Peer comparison
Dec 31, 2023