Granite Construction Incorporated (GVA)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,813,540 | 2,580,320 | 2,376,580 | 2,077,390 | 2,167,930 | 2,402,650 | 2,284,910 | 2,263,280 | 2,494,930 | 2,561,760 | 2,478,900 | 2,373,680 | 2,380,000 | 2,488,270 | 2,508,650 | 2,384,380 | 2,502,090 | 2,612,660 | 2,524,620 | 2,358,600 |
| 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 |
| Financial leverage ratio | 2.88 | 2.70 | 2.64 | 2.24 | 2.27 | 2.57 | 2.62 | 2.50 | 2.58 | 2.60 | 2.59 | 2.63 | 2.44 | 2.56 | 2.35 | 2.23 | 2.19 | 2.21 | 2.20 | 2.01 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,813,540K ÷ $977,298K
= 2.88
Granite Construction Inc.'s financial leverage ratio has fluctuated over the past eight quarters, ranging from a low of 2.24 in Q1 2023 to a high of 2.88 in Q4 2023. A financial leverage ratio above 1 indicates that the company primarily relies on debt to finance its operations and assets.
The upward trend in the financial leverage ratio from Q1 2023 to Q4 2023 suggests that the company may be taking on more debt relative to its equity over time. A higher financial leverage ratio typically indicates higher financial risk, as the company has a greater obligation to meet its debt payments.
It is important for investors and stakeholders to closely monitor Granite Construction Inc.'s financial leverage ratio to assess its ability to manage debt effectively and ensure long-term financial stability. This ratio provides insights into the company's capital structure and risk profile, highlighting the balance between debt and equity in its financing strategy.
Peer comparison
Dec 31, 2023