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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Granite Construction's annualized Net Income for the quarter that ended in Sep. 2024 was $316 Mil. Granite Construction's average Total Assets over the quarter that ended in Sep. 2024 was $3,006 Mil. Therefore, Granite Construction's annualized ROA % for the quarter that ended in Sep. 2024 was 10.51%.
The historical rank and industry rank for Granite Construction's ROA % or its related term are showing as below:
During the past 13 years, Granite Construction's highest ROA % was 3.96%. The lowest was -5.94%. And the median was 1.67%.
The historical data trend for Granite Construction's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Granite Construction Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
ROA % | Get a 7-Day Free Trial | -2.44 | -5.94 | 0.41 | 3.57 | 1.75 |
Granite Construction Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
ROA % | Get a 7-Day Free Trial | 9.30 | 3.86 | -4.58 | 5.39 | 10.51 |
For the Engineering & Construction subindustry, Granite Construction's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Construction industry and Industrials sector, Granite Construction's ROA % distribution charts can be found below:
* The bar in red indicates where Granite Construction's ROA % falls into.
Granite Construction's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
ROA % | = | Net Income (A: Dec. 2023 ) | / | ( (Total Assets (A: Dec. 2022 ) | + | Total Assets (A: Dec. 2023 )) | / count ) |
= | 43.599 | / | ( (2167.933 | + | 2813.54) | / 2 ) | |
= | 43.599 | / | 2490.7365 | ||||
= | 1.75 % |
Granite Construction's annualized ROA % for the quarter that ended in Sep. 2024 is calculated as:
ROA % | = | Net Income (Q: Sep. 2024 ) | / | ( (Total Assets (Q: Jun. 2024 ) | + | Total Assets (Q: Sep. 2024 )) | / count ) |
= | 315.804 | / | ( (2881.369 | + | 3130.925) | / 2 ) | |
= | 315.804 | / | 3006.147 | ||||
= | 10.51 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Sep. 2024) net income data. ROA % is displayed in the 30-year financial page.
Granite Construction (NYSE:GVA) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
ROA % | (Q: Sep. 2024 ) | ||
= | Net Income | / | Total Assets |
= | 315.804 | / | 3006.147 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (315.804 / 5102.04) | * | (5102.04 / 3006.147) |
= | Net Margin % | * | Asset Turnover |
= | 6.19 % | * | 1.6972 |
= | 10.51 % |
Note: The Net Income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Thank you for viewing the detailed overview of Granite Construction's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Molly Campbell | director | 135 N. LOS ROBLES AVE 7TH FLR, PASADENA CA 91101 |
Kyle T Larkin | officer: Senior Vice President | C/O 585 WEST BEACH STREET, WATSONVILLE CA 95076 |
Michael G Tatusko | officer: Senior Vice President | C/O 585 WEST BEACH STREET, WATSONVILLE CA 95076 |
Bradley Jay Williams | officer: Senior Vice President | C/O 585 WEST BEACH STREET, WATSONVILLE CA 95076 |
Louis E Caldera | director | C/O BELO CORP, PO BOX 655237, DALLAS TX 75265-5237 |
Staci M Woolsey | officer: Chief Accounting Officer | 4875 S FRANKLIN ST, CHERRY HILLS VILLAGE CO 80113 |
Laura M Mullen | director | C/O 585 WEST BEACH STREET, WATSONVILLE CA 95076 |
Brian R Dowd | officer: Senior Vice President | C/O 585 WEST BEACH STREET, WATSONVILLE CA 95076 |
Lisa Curtis | officer: CAO & VP, Investor Relations | 3200 SOUTHWEST FREEWAY, SUITE 2950, HOUSTON TX 77027 |
James A Radich | officer: Senior Vice President | C/O 585 WEST BEACH STREET, WATSONVILLE CA 95076 |
Desai Jigisha | officer: Senior Vice President & CFO | C/O 585 WEST BEACH STREET, WATSONVILLE CA 95076 |
Claes Bjork | director | GRANITE CONSTRUCTION INCORPORATED, PO BOX 50085, WATSONVILLE CA 95077-5085 |
Patricia D Galloway | director | C/O 585 WEST BEACH STREET, WATSONVILLE CA 95076 |
James Hildebrand Roberts | director, officer: Director, President & CEO | PO BOX 50085, WATSONVILLE CA 95077-5085 |
David H Kelsey | director | C/O OGLEBAY NORTON CO, 1100 SUPERIOR AVENUE, CLEVELAND OH 44114-2598 |
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