Granite Construction Incorporated (GVA)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 207,363 | 80,062 | 85,381 | -22,995 | 7,550 |
| Revenue | US$ in thousands | 4,007,570 | 3,509,140 | 3,301,260 | 3,010,050 | 3,562,460 |
| Operating profit margin | 5.17% | 2.28% | 2.59% | -0.76% | 0.21% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $207,363K ÷ $4,007,570K
= 5.17%
Granite Construction Incorporated's operating profit margin has shown variations over the past five years. At the end of December 2020, the operating profit margin stood at 0.21%, indicating a slim profitability relative to its operating revenue. However, by December 2021, the margin turned negative at -0.76%, suggesting that the company did not generate enough operating income to cover its operating expenses during that period.
The trend improved significantly by December 2022, with the operating profit margin increasing to 2.59%. This indicates that the company managed to enhance its operational efficiency and/or increase its revenues relative to its operating costs. The following year, by December 2023, Granite Construction Incorporated maintained a favorable operating profit margin of 2.28%.
By December 2024, the operating profit margin further improved to 5.17%, highlighting a positive trajectory in the company's ability to generate profits from its core business activities compared to its operating expenses. Overall, the company's operating profit margin seems to have gradually strengthened over the past five years, depicting a positive trend in its operational performance.
Peer comparison
Dec 31, 2024