Granite Construction Incorporated (GVA)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 43,599 | 83,302 | 10,096 | -145,117 | -60,191 |
| Total stockholders’ equity | US$ in thousands | 977,298 | 953,016 | 967,682 | 975,664 | 1,141,470 |
| ROE | 4.46% | 8.74% | 1.04% | -14.87% | -5.27% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $43,599K ÷ $977,298K
= 4.46%
The return on equity (ROE) of Granite Construction Inc. has fluctuated over the past five years. In 2023, the ROE was 4.46%, a decrease from 8.74% in 2022. Despite the decrease, the company still generated a positive return for its shareholders relative to the equity invested. Comparing to previous years, the ROE was notably higher in 2022 compared to 2021 when it was 1.04%. In 2020, the ROE was negative at -14.87%, indicating that the company incurred a loss in that year. The trend was similar in 2019 with a negative ROE of -5.27%.
The fluctuation in ROE could be attributed to various factors such as changes in profitability, financial leverage, and equity levels. Investors and stakeholders may closely monitor the company's ability to generate returns on the equity invested, as it indicates the efficiency and effectiveness of management in utilizing shareholder funds to generate profits. Further analysis of the company's financial performance and strategic initiatives may provide insights into the factors driving the changes in ROE over the years.
Peer comparison
Dec 31, 2023