Granite Construction Incorporated (GVA)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,025,660 | 3,130,920 | 2,881,370 | 2,595,040 | 2,813,540 | 2,580,320 | 2,376,580 | 2,077,390 | 2,167,930 | 2,407,960 | 2,291,330 | 2,282,140 | 2,494,930 | 2,561,760 | 2,478,900 | 2,373,680 | 2,380,000 | 2,488,270 | 2,508,650 | 2,384,380 |
| 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 |
| Financial leverage ratio | 2.98 | 3.11 | 3.09 | 2.74 | 2.88 | 2.70 | 2.64 | 2.24 | 2.27 | 2.53 | 2.59 | 2.48 | 2.58 | 2.60 | 2.59 | 2.63 | 2.44 | 2.56 | 2.35 | 2.23 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,025,660K ÷ $1,015,230K
= 2.98
The financial leverage ratio of Granite Construction Incorporated has shown fluctuations over the analyzed period. The ratio increased from 2.23 as of March 31, 2020, to a peak of 3.11 by September 30, 2024. This indicates that the company's reliance on debt to finance its operations and investments has been increasing.
During this period, the ratio experienced both upward and downward trends, with some quarters showing a decrease in the ratio compared to the previous period. For instance, there was a notable decrease from 3.11 as of September 30, 2024, to 2.98 by December 31, 2024. However, the ratio has generally been on an upward trajectory, indicating a higher proportion of debt in the company's capital structure.
It would be important for stakeholders to closely monitor Granite Construction's financial leverage ratio to assess the company's risk levels associated with its debt levels and to ensure that it maintains a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2024