The case of Granite Construction Industry Plc Study

The of Granite Construction Industry Plc - Case Study Example This paper focuses on Granite Construction Company. The paper is aimed at carrying out financial analyses of Granite Construction Plc with particular focus on the liquidity, profitability and solvency ratio so as to gain a reasonable basis for providing recommendations to investors and suppliers on whether to invest or continue business for the company, and finally see the various methods through which the company access the capital market. Having said this, the sections that follow will be structured as follows. Section two provides an overview of the company. Part three provide a table of the various ratios, section four compares these ratios to the industry benchmark, while the next section examine the capital structure of the company and provides recommendations to various interest groups. Granite Construction Inc is a heavy civil construction contractor in the United States. The Company operates nationwide, serving both public and private sector clients. In the public sector, th e company primarily focuses on infrastructure projects, including the construction of roads, highways, bridges, dams, canals, mass transit facilities and airport infrastructure. (Annual report 2007). In the private sector, Granite Construction Inc performs site preparation and infrastructure services for residential development, commercial and industrial buildings, plants and other facilities (www.graniteconstruction.com). According to the (2007), the company owns and leases substantial aggregate reserves and own a number of construction materials processing plants. The Company also have a contractor-owned heavy construction equipment fleets in the United States (www.graniteconstruction.com). Bodie et al (2002), defines the macro economy as the environment in which all firms operate. According to Bodie et al (2002), based on a study on the S&P 500, stock price tends to rise with earnings per share. Although ones ability to forecast the macro economy environment can lead to speculative investment performance, it is not enough to forecast the m