Granite Construction Incorporated (GVA)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 614,781 | 286,934 | 331,191 | 330,522 | 356,108 |
| Total stockholders’ equity | US$ in thousands | 977,298 | 953,016 | 967,682 | 975,664 | 1,141,470 |
| Debt-to-equity ratio | 0.63 | 0.30 | 0.34 | 0.34 | 0.31 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $614,781K ÷ $977,298K
= 0.63
Granite Construction Inc.'s debt-to-equity ratio has fluctuated over the past five years, indicating changes in the company's capital structure and financial leverage. In 2023, the debt-to-equity ratio increased to 0.67 from 0.30 in 2022. This suggests that the company may have taken on more debt relative to equity, potentially increasing financial risk.
Comparing to the previous years, in 2021, the ratio was 0.35, the same as in 2020, and slightly higher than in 2019 at 0.32. These consistent levels indicate a relatively stable debt-to-equity ratio during those years.
The significant increase in the debt-to-equity ratio in 2023 compared to the previous years may raise concerns about the company's financial leverage and ability to cover its debt obligations. It is essential for stakeholders to monitor how Granite Construction manages its debt levels to maintain financial stability and mitigate risks associated with high leverage.
Peer comparison
Dec 31, 2023