Graphic Packaging Holding Company (GPK)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.71 | 5.32 | 4.88 | 4.84 | 4.62 | |
| DOH | days | 77.55 | 68.66 | 74.77 | 75.41 | 78.94 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.71
= 77.55
The days of inventory on hand (DOH) for Graphic Packaging Holding Co have exhibited variability over the past five years. The trend indicates fluctuations in the company's ability to efficiently manage its inventory levels. In 2023, the DOH increased to 87.57 days from 77.03 days in 2022, which may suggest a lengthening of the time it takes for the company to sell its inventory. This increase follows a similar pattern seen in 2021 when the DOH was 83.20 days.
Comparing these recent figures to 2020 and 2019, where the DOH was lower at 75.38 days and 78.94 days respectively, it appears that Graphic Packaging Holding Co may be facing challenges in optimizing its inventory turnover.
Overall, the increasing trend in DOH over the past three years raises concerns about the company's inventory management practices, as higher DOH levels typically indicate slower inventory turnover and potentially tied-up capital in excess inventory. Further analysis and monitoring of the company's inventory management strategies may be warranted to address potential inefficiencies.
Peer comparison
Dec 31, 2023