Granite Construction Incorporated (GVA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Granite Construction Incorporated's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity over the past few years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00, suggesting that the company has no significant debt obligations compared to its total assets, capital, and shareholder equity.
The Financial leverage ratio, which measures the proportion of a company's total assets that are financed by debt, has shown some fluctuations but generally remains relatively low compared to industry peers. The ratio started at 2.23 in March 2020, peaked at 3.11 in September 2024, and decreased slightly to 2.98 by December 2024. Overall, the financial leverage ratio indicates that Granite Construction Incorporated has maintained a conservative leverage structure, which is a positive sign for its solvency and financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.39 | 7.44 | 6.52 | 2.84 | 3.56 | 3.89 | 2.74 | 5.42 | 6.49 | 2.86 | 2.31 | 2.63 | -0.89 | -1.21 | -3.14 | -5.94 | -6.38 | -2.31 | -1.09 | -1.49 |
Granite Construction Incorporated's interest coverage ratio shows a fluctuating trend over the reported periods. The ratio was consistently negative from March 2020 to March 2022, indicating that the company's earnings were insufficient to cover its interest expenses during those periods.
However, starting from March 2022, the interest coverage ratio turned positive, indicating an improvement in the company's ability to meet its interest obligations. The ratio continued to increase steadily, reaching its peak of 8.39 in December 2024.
This positive trend in the interest coverage ratio suggests that Granite Construction Incorporated has made significant progress in generating enough operating income to cover its interest payments. A higher interest coverage ratio is generally preferred by investors and creditors as it signifies financial stability and lower financial risk for the company.