Granite Construction Incorporated (GVA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.29% | 11.30% | 11.19% | 10.15% | 9.68% |
| Operating profit margin | 5.17% | 2.28% | 2.59% | -0.76% | 0.21% |
| Pretax margin | 4.90% | 1.71% | 2.78% | -0.32% | -4.67% |
| Net profit margin | 3.15% | 1.24% | 2.52% | -0.27% | -4.66% |
Granite Construction Incorporated has shown a positive trend in its profitability ratios over the past five years. The gross profit margin has improved steadily from 9.68% in 2020 to 14.29% in 2024, indicating that the company is effectively managing its production costs and generating more profit from its operations.
Similarly, the operating profit margin has also shown significant improvement, moving from a negative -0.76% in 2021 to 5.17% in 2024. This suggests that Granite Construction has been able to control its operating expenses more efficiently and enhance its operational efficiency.
The pretax margin, reflecting the company's profitability before taxes, has also increased consistently from -4.67% in 2020 to 4.90% in 2024. This indicates that Granite Construction has been able to generate higher profits relative to its total revenue, demonstrating better financial performance and management effectiveness.
Lastly, the net profit margin, which represents the company's bottom line profitability, shows a positive trajectory from -4.66% in 2020 to 3.15% in 2024. This indicates that after accounting for all expenses, including taxes, Granite Construction has been able to improve its overall profitability and generate more earnings for its shareholders.
Overall, the profitability ratios of Granite Construction Incorporated reflect a strong performance, with consistent improvement over the past five years, indicating effective cost management and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.85% | 2.85% | 3.94% | -0.92% | 0.32% |
| Return on assets (ROA) | 4.18% | 1.55% | 3.84% | -0.33% | -6.98% |
| Return on total capital | 22.20% | 8.01% | 7.45% | -4.31% | -9.53% |
| Return on equity (ROE) | 12.45% | 4.46% | 8.74% | -0.85% | -17.03% |
Granite Construction Incorporated's profitability ratios have shown improvement over the years.
- Operating return on assets (Operating ROA) has increased from 0.32% in 2020 to 6.85% in 2024, indicating the company's ability to generate profits from its operations relative to its assets.
- Return on assets (ROA) has also exhibited positive progression, rising from -6.98% in 2020 to 4.18% in 2024, reflecting the efficiency of the company in generating earnings from its total assets.
- Return on total capital has shown a significant improvement, escalating from -9.53% in 2020 to 22.20% in 2024, indicating the company's effectiveness in utilizing its total capital to generate returns.
- Return on equity (ROE) has also demonstrated a favorable trend, increasing from -17.03% in 2020 to 12.45% in 2024, revealing the company's ability to generate returns for its shareholders.
Overall, the profitability ratios of Granite Construction Incorporated reflect a positive trajectory, showcasing the company's enhanced profitability and efficiency in utilizing its resources to drive returns for its stakeholders.