Granite Construction Incorporated (GVA)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 244,927 | 207,461 | 162,116 | 67,103 | 65,638 | 56,524 | 33,268 | 64,680 | 81,817 | 40,863 | 38,950 | 48,554 | -18,020 | -27,109 | -73,921 | -107,113 | -112,574 | -89,769 | -40,660 | -62,145 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,015,230 | 1,007,090 | 931,657 | 946,458 | 977,298 | 955,348 | 901,542 | 925,457 | 953,016 | 951,123 | 883,919 | 919,839 | 967,682 | 985,185 | 955,384 | 903,540 | 975,664 | 971,606 | 1,067,720 | 1,067,750 |
| Return on total capital | 24.13% | 20.60% | 17.40% | 7.09% | 6.72% | 5.92% | 3.69% | 6.99% | 8.59% | 4.30% | 4.41% | 5.28% | -1.86% | -2.75% | -7.74% | -11.85% | -11.54% | -9.24% | -3.81% | -5.82% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $244,927K ÷ ($—K + $1,015,230K)
= 24.13%
Granite Construction Incorporated experienced a fluctuating trend in its return on total capital over the timeframe provided. The company's return on total capital was negative, averaging around -6% to -12% from March 2020 to March 2022. However, there was a significant improvement starting from the first quarter of 2022, with the return turning positive and showing an increasing trend. By the end of December 2024, the return on total capital had risen substantially to 24.13%, indicating a notable recovery and improved efficiency in utilizing its total capital to generate profits. This upward trend in return on total capital suggests enhanced financial performance and effectiveness in capital utilization by Granite Construction Incorporated during the latter part of the period analyzed.
Peer comparison
Dec 31, 2024