Granite Construction Incorporated (GVA)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,716,660 | 1,643,450 | 1,347,300 | 1,827,400 | 1,455,250 |
| Total current liabilities | US$ in thousands | 1,031,960 | 1,029,880 | 797,594 | 1,069,320 | 943,256 |
| Current ratio | 1.66 | 1.60 | 1.69 | 1.71 | 1.54 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,716,660K ÷ $1,031,960K
= 1.66
Granite Construction Incorporated's current ratio has shown a generally stable trend over the past five years, ranging from 1.54 in December 31, 2020 to 1.66 in December 31, 2024. The current ratio measures the company's ability to cover its short-term obligations with its current assets.
With a current ratio consistently above 1, Granite Construction Incorporated has maintained a healthy liquidity position, indicating that it has ample current assets to meet its current liabilities.
Although there has been some fluctuation in the current ratio over the years, the company's ability to maintain a ratio above 1 signifies that it is generally capable of meeting its short-term financial obligations in the foreseeable future. A current ratio of around 1.7 in December 31, 2021 suggests the company had a stronger liquidity position during that period, while the slight decrease to 1.60 in December 31, 2023 may indicate a temporary decrease in liquidity. Overall, the current ratio analysis indicates that Granite Construction Incorporated has maintained a level of liquidity that allows it to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024