Granite Construction Incorporated (GVA)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 205,976 | 145,512 | 115,032 | 59,458 | 59,509 | 63,866 | 50,059 | 24,306 | 50,615 | 51,254 | 34,975 | 100,428 | 31,677 | 34,578 | 34,338 | -36,977 | -5,868 | -13,636 | -34,763 | -158,652 |
| Total assets | US$ in thousands | 3,025,660 | 3,130,920 | 2,881,370 | 2,595,040 | 2,813,540 | 2,580,320 | 2,376,580 | 2,077,390 | 2,167,930 | 2,407,960 | 2,291,330 | 2,282,140 | 2,494,930 | 2,561,760 | 2,478,900 | 2,373,680 | 2,380,000 | 2,488,270 | 2,508,650 | 2,384,380 |
| Operating ROA | 6.81% | 4.65% | 3.99% | 2.29% | 2.12% | 2.48% | 2.11% | 1.17% | 2.33% | 2.13% | 1.53% | 4.40% | 1.27% | 1.35% | 1.39% | -1.56% | -0.25% | -0.55% | -1.39% | -6.65% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $205,976K ÷ $3,025,660K
= 6.81%
Operating return on assets (Operating ROA) is a key financial metric that indicates how efficiently a company is utilizing its assets to generate operating income. For Granite Construction Incorporated, the Operating ROA trend shows improvement over the data provided from March 31, 2020, to December 31, 2024.
Initially, from March 31, 2020, to December 31, 2021, the company had negative Operating ROAs, indicating inefficiency in generating operating income relative to its assets. However, starting from March 31, 2022, there was a significant turnaround with positive Operating ROAs, signifying improved asset utilization and operational performance.
The positive trend in Operating ROA continued to strengthen through the end of December 31, 2024. The percentages increased steadily from 1.27% on December 31, 2021, to 6.81% on December 31, 2024, demonstrating a consistent improvement in the company's ability to generate operating income per dollar of assets employed.
Overall, the positive trajectory of Granite Construction Incorporated's Operating ROA reflects enhanced operational efficiency and effectiveness in utilizing its assets to drive profitability, which is a positive sign for investors and stakeholders.
Peer comparison
Dec 31, 2024