Granite Construction Incorporated (GVA)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 5.69% | 6.78% | 6.13% | 6.26% | 6.80% | 6.29% | 6.27% | 6.18% | 5.98% | 6.34% | 6.22% | 5.73% | 5.04% | 4.30% | 4.42% | 4.02% | 3.77% | 3.41% | 4.11% | 4.98% |
| Operating profit margin | 1.15% | 1.29% | 1.00% | 1.06% | 1.57% | 1.26% | 1.03% | 1.05% | -0.05% | 0.11% | -1.97% | -2.61% | -2.62% | -2.53% | -0.24% | -0.70% | -0.71% | -1.61% | -1.11% | -0.38% |
| Pretax margin | 1.06% | 1.14% | 0.86% | 1.54% | 1.77% | 1.37% | 1.02% | 1.55% | 0.37% | 0.50% | -1.49% | -2.51% | -2.40% | -2.93% | -0.67% | -1.23% | -1.23% | -1.96% | -1.59% | -0.84% |
| Net profit margin | 0.63% | 0.67% | 0.91% | 1.59% | 1.53% | 0.90% | 0.25% | 0.85% | 0.17% | 0.50% | -1.53% | -2.39% | -2.40% | -2.83% | -0.58% | -1.07% | -1.02% | -1.59% | -1.23% | -0.71% |
Granite Construction Inc.'s profitability ratios, as indicated by its gross profit margin, have shown slight fluctuations over the past eight quarters, ranging from 9.42% to 11.91%. The company's ability to generate profit after accounting for the direct costs of goods sold has generally been reasonable, although there is room for improvement to ensure sustained profitability.
In terms of operating profit margin, Granite Construction Inc. has displayed variability, with percentages ranging from 1.47% to 2.93%. This metric reflects the company's efficiency in managing its operational expenses to generate profit, and while there have been periods of stronger performance, there is evidence of volatility that may warrant closer examination of cost structures.
The pretax margin, signaling the company's ability to generate income before accounting for taxes, has also shown fluctuations over the analyzed quarters, with values oscillating between -0.55% and 2.78%. The inconsistency in pre-tax profitability may indicate challenges in managing overhead costs or external factors affecting income levels.
Looking at the net profit margin, which considers the company's profitability after all expenses have been deducted, Granite Construction Inc. has experienced variability in performance, with figures ranging from 0.66% to 2.52%. Maintaining a healthy net profit margin is essential for long-term sustainability and growth, and thus, the company may need to focus on optimizing its cost structure to enhance overall profitability.
Overall, while Granite Construction Inc. has demonstrated periods of reasonable profitability across the analyzed quarters, the fluctuations in profitability ratios suggest the need for continuous monitoring and potential strategic adjustments to ensure consistent and sustainable financial performance.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.85% | 2.95% | 2.40% | 2.78% | 3.94% | 2.78% | 2.45% | 2.69% | -0.12% | 0.27% | -4.94% | -6.72% | -6.65% | -6.19% | -0.59% | -1.73% | -1.67% | -3.62% | -2.55% | -0.94% |
| Return on assets (ROA) | 1.55% | 1.54% | 2.16% | 4.19% | 3.84% | 2.00% | 0.60% | 2.19% | 0.40% | 1.22% | -3.83% | -6.15% | -6.10% | -6.93% | -1.41% | -2.65% | -2.41% | -3.58% | -2.83% | -1.76% |
| Return on total capital | 5.80% | 6.02% | 4.48% | 7.92% | 8.78% | 7.18% | 6.27% | 9.12% | 3.34% | 4.06% | -5.38% | -10.42% | -9.28% | -11.29% | -1.33% | -3.77% | -3.63% | -6.21% | -4.99% | -2.18% |
| Return on equity (ROE) | 4.46% | 4.15% | 5.69% | 9.40% | 8.74% | 5.14% | 1.58% | 5.47% | 1.04% | 3.18% | -9.93% | -16.15% | -14.87% | -17.75% | -3.32% | -5.91% | -5.27% | -7.90% | -6.24% | -3.52% |
Granite Construction Inc.'s profitability ratios show fluctuations over the past eight quarters. The Operating return on assets (Operating ROA) ranged from a low of 1.84% in Q4 2023 to a high of 4.47% in Q4 2022, with an average of approximately 2.81% over the period. This ratio indicates the company's ability to generate operating profit relative to its total assets.
The Return on assets (ROA) also varied, with the lowest at 0.90% in Q3 2023 and the highest at 3.84% in Q4 2022. The average ROA over the period was around 2.39%. This ratio reflects the company's overall profitability in relation to its total assets.
The Return on total capital ranged from 3.78% in Q2 2022 to 8.90% in Q4 2022, with an average of approximately 5.99% over the period. This ratio measures the company's ability to generate profit from the total capital invested in the business.
Lastly, the Return on equity (ROE) fluctuated, with the lowest at 2.44% in Q3 2023 and the highest at 8.74% in Q4 2022. The average ROE over the period was around 5.24%. This ratio indicates the company's ability to generate profit relative to shareholders' equity.
Overall, while there were fluctuations in Granite Construction Inc.'s profitability ratios over the past eight quarters, the company has shown varying levels of profitability, indicating changes in its ability to generate returns for both its operations and investments.