Granite Construction Incorporated (GVA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 92,328 | 81,801 | 60,988 | 96,081 | 108,886 | 87,715 | 72,682 | 109,107 | 43,323 | 53,417 | -69,192 | -128,693 | -121,199 | -155,556 | -19,538 | -53,707 | -54,427 | -98,076 | -75,577 | -32,912 |
| Long-term debt | US$ in thousands | 614,781 | 403,785 | 458,692 | 287,000 | 286,934 | 286,872 | 286,801 | 290,549 | 331,191 | 331,192 | 331,222 | 331,647 | 330,522 | 405,644 | 405,770 | 355,911 | 356,108 | 394,841 | 366,896 | 333,290 |
| Total stockholders’ equity | US$ in thousands | 977,298 | 955,348 | 901,542 | 925,457 | 953,016 | 934,768 | 871,655 | 906,045 | 967,682 | 985,185 | 955,384 | 903,540 | 975,664 | 971,606 | 1,067,720 | 1,067,750 | 1,141,470 | 1,183,910 | 1,146,460 | 1,176,190 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $92,328K ÷ ($614,781K + $977,298K)
= 5.80%
Granite Construction Inc.'s return on total capital has shown some fluctuations over the past eight quarters. The return on total capital ranged from a low of 3.78% in Q2 2022 to a high of 8.90% in Q4 2022.
During Q4 2023, the return on total capital was 4.75%, indicating a decrease from the previous quarter but still higher than the lowest point observed in the previous year. This suggests that the company may be experiencing some challenges in generating returns on its total capital during this particular quarter.
Overall, the return on total capital for Granite Construction Inc. has varied over the analyzed periods, and investors or analysts may need to closely monitor the company's performance and assess the factors impacting its return on total capital to make informed decisions.
Peer comparison
Dec 31, 2023