Graphic Packaging Holding Company (GPK)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.39 | 4.71 | 5.32 | 4.88 | 4.84 | |
| DOH | days | 83.08 | 77.55 | 68.66 | 74.77 | 75.41 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.39
= 83.08
Based on the data provided, Graphic Packaging Holding Company's days of inventory on hand (DOH) has shown some fluctuations over the past five years.
As of December 31, 2020, the company had approximately 75.41 days of inventory on hand, indicating that it took around 75.41 days for the company to sell its inventory.
By December 31, 2021, the DOH decreased slightly to 74.77 days, suggesting a marginal improvement in inventory turnover efficiency.
In the following years, there was a further decrease in DOH, reaching 68.66 days by December 31, 2022. This reduction indicates a more efficient management of inventory levels, possibly through better inventory control or demand forecasting.
However, by December 31, 2023, the DOH increased to 77.55 days, signaling a potential slowdown in inventory turnover efficiency compared to the previous year.
The trend continued in the most recent period, with the DOH reaching 83.08 days by December 31, 2024. This increase suggests that Graphic Packaging Holding Company may be holding more inventory relative to its sales, which could impact cash flow and profitability.
Overall, the fluctuations in Graphic Packaging Holding Company's days of inventory on hand over the past five years indicate a changing inventory management strategy and the need for the company to monitor and adjust its inventory levels to maintain optimal efficiency and profitability.
Peer comparison
Dec 31, 2024