Granite Construction Incorporated (GVA)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 73,866 | 96,262 | 29,809 | -145,399 | -72,479 |
| Revenue | US$ in thousands | 6,977,110 | 6,602,500 | 6,066,260 | 7,107,650 | 6,891,540 |
| Pretax margin | 1.06% | 1.46% | 0.49% | -2.05% | -1.05% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $73,866K ÷ $6,977,110K
= 1.06%
Granite Construction Inc.'s pretax margin has shown fluctuations over the past five years. In 2023, the pretax margin stood at 1.71%, which was a decrease from the previous year's figure of 2.78%. This decline may indicate a decrease in the company's profitability before accounting for taxes in 2023.
Comparing further back, the pretax margin was negative in 2020 and 2021, indicating the company incurred losses before taxes during those years. The negative pretax margins in 2020 and 2021 improved slightly in 2022 and 2019 but remained in the negative range, suggesting ongoing financial challenges.
Overall, the trend in Granite Construction Inc.'s pretax margin highlights the importance of monitoring the company's profitability and efficiency in managing costs to ensure sustainable financial performance.
Peer comparison
Dec 31, 2023