Granite Construction Incorporated (GVA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 417,663 | 293,991 | 395,647 | 425,292 | 252,345 |
| Short-term investments | US$ in thousands | 35,863 | 39,374 | 0 | 10,844 | 27,799 |
| Receivables | US$ in thousands | 598,705 | 463,987 | 464,588 | 437,558 | 547,417 |
| Total current liabilities | US$ in thousands | 1,029,880 | 797,594 | 1,069,320 | 943,256 | 842,056 |
| Quick ratio | 1.02 | 1.00 | 0.80 | 0.93 | 0.98 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($417,663K
+ $35,863K
+ $598,705K)
÷ $1,029,880K
= 1.02
Granite Construction Inc.'s quick ratio has fluctuated over the past five years, ranging from 1.28 to 1.58. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
In 2021, Granite Construction Inc.'s quick ratio was 1.28, suggesting a slight decrease in its short-term liquidity compared to the previous year. This may indicate that the company had a lower level of liquid assets relative to its current liabilities in that year.
However, in 2022, the quick ratio improved to 1.58, indicating a stronger ability to cover its short-term obligations with liquid assets. This increase in quick ratio may suggest improved financial health or better management of working capital by Granite Construction Inc.
In 2023, the quick ratio decreased slightly to 1.49, still indicating a healthy short-term liquidity position for the company. This level of quick ratio implies that Granite Construction Inc. has sufficient liquid assets to meet its current obligations, albeit slightly lower than the previous year.
Overall, Granite Construction Inc.'s quick ratio has shown some variability over the past five years, but has generally remained above 1, indicating a sound ability to meet its short-term financial obligations with liquid assets. However, further analysis of the company's cash flow, working capital management, and overall financial health would provide a more comprehensive understanding of its liquidity position.
Peer comparison
Dec 31, 2023