Granite Construction Incorporated (GVA)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 43,599 | 83,302 | 10,096 | -145,117 | -60,191 |
| Revenue | US$ in thousands | 6,977,110 | 6,602,500 | 6,066,260 | 7,107,650 | 6,891,540 |
| Net profit margin | 0.62% | 1.26% | 0.17% | -2.04% | -0.87% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $43,599K ÷ $6,977,110K
= 0.62%
Granite Construction Inc.'s net profit margin has fluctuated over the past five years. In 2023, the net profit margin was recorded at 1.24%, which is a decrease from the previous year's 2.52%. The decline in net profit margin from 2022 to 2023 indicates a decrease in profitability efficiency, reflecting that the company's ability to generate profits from its revenue has weakened.
Comparing the more recent years to the earlier ones, there has been an improvement in Granite Construction Inc.'s net profit margin. In 2021 and 2020, the company had low net profit margins of 0.34% and -4.07%, respectively, indicating periods of financial challenges. However, in 2019, the net profit margin was even lower at -1.75%.
The positive trend from 2019 to 2022 reflects efforts to enhance profitability, but the recent decline in 2023 indicates a potential setback. It would be important for Granite Construction Inc. to assess its cost structure, revenue generation strategies, and overall operational efficiency to improve its net profit margin and ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023