Granite Construction Incorporated (GVA)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.63 | 0.42 | 0.51 | 0.31 | 0.30 | 0.31 | 0.33 | 0.32 | 0.34 | 0.34 | 0.35 | 0.37 | 0.34 | 0.42 | 0.38 | 0.33 | 0.31 | 0.33 | 0.32 | 0.28 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $614,781K ÷ $977,298K
= 0.63
The debt-to-equity ratio of Granite Construction Inc. has displayed fluctuations over the past eight quarters. In Q4 2023, the ratio increased to 0.67 from 0.42 in Q3 2023, indicating a higher level of debt relative to equity. This might raise concerns about the company's financial leverage and ability to repay its debt obligations.
Comparing with the ratios from the previous quarters, the Q4 2023 ratio of 0.67 is notably higher than the average ratios observed in the prior quarters. The highest ratio was seen in Q1 2023 at 0.51, which indicates that the company had previously experienced a relatively high level of debt compared to equity.
On the other hand, the lowest ratios were observed in Q4 2022 and Q3 2022, both at 0.30. These lower ratios imply a higher proportion of equity relative to debt in the company's capital structure during those periods.
Overall, the fluctuation in the debt-to-equity ratio of Granite Construction Inc. suggests varying levels of financial risk and leverage over the analyzed quarters. Investors and stakeholders may want to monitor these trends closely to assess the company's ability to manage its debt effectively and maintain a healthy balance between debt and equity.
Peer comparison
Dec 31, 2023