Granite Construction Incorporated (GVA)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,025,660 | 2,813,540 | 2,167,930 | 2,494,930 | 2,380,000 |
| Operating ROA | 6.85% | 2.85% | 3.94% | -0.92% | 0.32% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $207,363K ÷ $3,025,660K
= 6.85%
Granite Construction Incorporated's operating return on assets (ROA) has varied over the years. As of December 31, 2020, the operating ROA stood at 0.32%, indicating a modest return on the company's assets. However, by the end of 2021, the operating ROA had turned negative, signaling potential operational inefficiencies or challenges. The company made a significant improvement by December 31, 2022, achieving an operating ROA of 3.94%, which suggests better utilization of assets to generate operating income.
The positive trend continued into 2023, with an operating ROA of 2.85%, indicating continued efficiency in asset management and operations. By the end of 2024, Granite Construction Incorporated experienced a notable increase in operating ROA to 6.85%, indicating a significant improvement in profitability relative to the assets employed.
Overall, the fluctuation in operating ROA over the years showcases the company's ability to adapt and improve operational performance, turning negative returns into positive ones and achieving a more favorable return on assets in recent years.
Peer comparison
Dec 31, 2024