Granite Construction Incorporated (GVA)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 80,062 | 85,381 | 24,718 | -158,345 | -41,724 |
| Total assets | US$ in thousands | 2,813,540 | 2,167,930 | 2,494,930 | 2,380,000 | 2,502,090 |
| Operating ROA | 2.85% | 3.94% | 0.99% | -6.65% | -1.67% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $80,062K ÷ $2,813,540K
= 2.85%
The operating return on assets (operating ROA) for Granite Construction Inc. has fluctuated over the past five years. In 2023, the operating ROA stands at 1.84%, showing a decline from the previous year's 4.47%. This decrease indicates that the company's operating income generated from its assets has decreased compared to the prior year.
The significant improvement in operating ROA from 2020 to 2022, where it increased from -0.36% to 4.47%, suggests that the company was able to enhance its operational efficiency and profitability during this period. However, the negative operating ROA figures in 2020 and 2019 highlight that the company was not able to efficiently utilize its assets to generate positive operating income during those years.
Overall, Granite Construction Inc. may need to focus on improving its operational performance and asset management to ensure sustainable profitability and enhance its operating ROA in the future.
Peer comparison
Dec 31, 2023