Graphic Packaging Holding Company (GPK)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.70 | 4.83 | 4.92 | 4.99 | 5.26 | 5.27 | 5.06 | 4.84 | 4.88 | 5.29 | 5.45 | 5.09 | 4.84 | 4.61 | 4.33 | 4.47 | 4.62 | 4.74 | 4.60 | 4.72 | |
| DOH | days | 77.73 | 75.64 | 74.25 | 73.14 | 69.40 | 69.29 | 72.15 | 75.34 | 74.77 | 69.06 | 67.01 | 71.75 | 75.41 | 79.20 | 84.22 | 81.71 | 78.94 | 77.00 | 79.39 | 77.28 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.70
= 77.73
The days of inventory on hand (DOH) for Graphic Packaging Holding Co have shown a slight increase over the past eight quarters. In Q4 2023, the DOH was 87.57 days, up from 85.21 days in the previous quarter. This indicates that the company is holding inventory for a longer period before it is sold. However, compared to Q1 2022, where the DOH was 83.90 days, the current level is still relatively higher.
The upward trend in DOH could suggest potential inefficiencies in inventory management, possibly due to overstocking or slower inventory turnover. This could tie up working capital and increase carrying costs for Graphic Packaging Holding Co. It may be beneficial for the company to assess its inventory management practices and aim to optimize inventory levels to improve efficiency and profitability.
Peer comparison
Dec 31, 2023