Granite Construction Incorporated (GVA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 225,380 | 78,316 | 70,964 | -41,721 | -93,005 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,015,230 | 977,298 | 953,016 | 967,682 | 975,664 |
| Return on total capital | 22.20% | 8.01% | 7.45% | -4.31% | -9.53% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $225,380K ÷ ($—K + $1,015,230K)
= 22.20%
Granite Construction Incorporated's return on total capital has shown fluctuations over the past five years. The trend demonstrates an improvement from negative percentages in 2020 and 2021, to positive figures in subsequent years. This indicates a positive shift in the company's ability to generate returns relative to its total capital employed. Notably, there was a significant increase in 2024, where the return on total capital surged to 22.20%, reflecting a substantial enhancement in the company's capital utilization efficiency and profitability. Overall, the upward trajectory of the return on total capital suggests an improving financial performance and effective capital management by Granite Construction Incorporated.
Peer comparison
Dec 31, 2024