Granite Construction Incorporated (GVA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.60 | 1.60 | 1.72 | 1.72 | 1.69 | 1.50 | 1.59 | 1.68 | 1.71 | 1.51 | 1.49 | 1.45 | 1.54 | 1.59 | 1.60 | 1.61 | 1.64 | 1.70 | 1.64 | 1.79 |
| Quick ratio | 1.02 | 1.01 | 1.01 | 0.88 | 1.00 | 0.87 | 0.75 | 0.81 | 0.80 | 1.04 | 0.88 | 0.83 | 0.93 | 1.27 | 1.00 | 0.90 | 0.98 | 1.07 | 0.89 | 0.91 |
| 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 |
Granite Construction Inc.'s liquidity ratios have shown fluctuations over the past eight quarters.
The current ratio has remained relatively stable, fluctuating between 1.60 and 1.72. This indicates that the company has sufficient current assets to cover its current liabilities, demonstrating a healthy liquidity position.
The quick ratio, which excludes inventory from current assets, also shows stability but with slightly greater fluctuations between 1.30 and 1.61. This ratio suggests that the company can meet its short-term obligations without relying on selling inventory, which is a positive sign for liquidity management.
The cash ratio, while showing variability, has generally been above 0.77, ranging from 0.77 to 1.04. This ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents, which is essential for meeting immediate financial obligations.
Overall, Granite Construction Inc. appears to have maintained a sound liquidity position over the quarters analyzed based on these ratios. It is important for the company to continue monitoring and managing its liquidity effectively to ensure its ability to meet financial obligations in a timely manner.
Additional liquidity measure
| 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 conversion cycle | days | -0.38 | 3.57 | 8.30 | 3.60 | 1.92 | -3.04 | 0.27 | -3.48 | -4.49 | 9.04 | 6.57 | 4.03 | 1.75 | 11.64 | 9.82 | 7.98 | 2.06 | 12.88 | 14.27 | 10.83 |
The cash conversion cycle of Granite Construction Inc. has shown fluctuations over the past quarters. In Q4 2023, the company's cash conversion cycle was 26.57 days, representing a slight decrease from the previous quarter. This indicates the company's ability to efficiently convert its investments in raw materials and other inputs into cash received from sales.
During Q3 and Q2 2023, the cash conversion cycle increased to 31.47 days and 32.94 days, respectively, suggesting a lengthening in the time taken to convert investments into cash. This could be attributed to factors such as delays in customer payments or increased inventory holding periods.
In Q1 2023, the cash conversion cycle decreased significantly to 19.45 days, indicating a more efficient management of cash flows and working capital during that period. This could be a result of improved receivables collection or more effective inventory management.
Comparing the Q4 2023 cash conversion cycle to the same quarter in the previous year (Q4 2022), we see that there has been a decrease from 20.48 days to 26.57 days. This implies that Granite Construction Inc. took longer to convert investments into cash in Q4 2023 compared to Q4 2022.
The company's cash conversion cycle in Q1 and Q2 2022 was relatively low at 18.42 days and 33.61 days, respectively, indicating efficient working capital management during those periods.
Overall, Granite Construction Inc. has experienced fluctuations in its cash conversion cycle, which may be influenced by various internal and external factors impacting its working capital efficiency and cash flow management. It is important for the company to closely monitor its working capital metrics to maintain optimal cash conversion cycles and improve overall financial performance.