Granite Construction Incorporated (GVA)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 396,399 | 398,869 | 347,281 | 341,761 | 369,494 | 335,159 | 340,039 | 359,419 | 362,645 | 393,518 | 386,598 | 350,700 | 304,653 | 262,558 | 272,101 | 237,811 | 221,678 | 200,945 | 239,048 | 291,714 |
| Revenue (ttm) | US$ in thousands | 6,971,350 | 5,879,173 | 5,667,503 | 5,458,263 | 5,431,183 | 5,325,166 | 5,427,206 | 5,817,366 | 6,062,166 | 6,209,360 | 6,214,250 | 6,116,400 | 6,046,880 | 6,102,077 | 6,156,537 | 5,911,407 | 5,881,417 | 5,888,155 | 5,819,425 | 5,852,105 |
| Gross profit margin | 5.69% | 6.78% | 6.13% | 6.26% | 6.80% | 6.29% | 6.27% | 6.18% | 5.98% | 6.34% | 6.22% | 5.73% | 5.04% | 4.30% | 4.42% | 4.02% | 3.77% | 3.41% | 4.11% | 4.98% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $396,399K ÷ $6,971,350K
= 5.69%
Granite Construction Inc.'s gross profit margin has shown variations over the past eight quarters. In Q4 2023, the gross profit margin decreased to 11.30% from 11.91% in Q3 2023. This decline may be indicative of potential challenges in managing direct costs related to sales. Despite the decrease, the gross profit margin in Q4 2023 remained relatively stable compared to the same quarter in the previous year, where it stood at 11.19%.
On a broader perspective, the company has generally maintained its gross profit margin within a range of 9.42% to 11.91% over the past two years. This indicates a certain level of consistency in managing the cost of goods sold relative to revenue. However, there seems to be some fluctuation quarter to quarter, with the gross profit margin peaking at 11.91% in Q3 2023 and hitting a low of 9.42% in Q2 2022.
Overall, further analysis and examination of the company's cost structure and revenue generation may be necessary to understand the factors contributing to these fluctuations in the gross profit margin. Tracking these trends over time can help assess the company's efficiency in generating profits from its core business operations.
Peer comparison
Dec 31, 2023