Graphic Packaging Holding Company (GPK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.29 | 10.74 | 8.33 | 10.03 | 12.21 | |
| DSO | days | 32.33 | 33.99 | 43.81 | 36.39 | 29.89 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.29
= 32.33
To analyze Graphic Packaging Holding Co's days of sales outstanding (DSO) trend, we can observe the following:
- DSO has shown fluctuations over the past five years, with values ranging from a low of 29.89 days in 2019 to a high of 43.81 days in 2021.
- In 2020, DSO decreased from the prior year, indicating a more efficient collection of accounts receivable compared to 2019.
- The increase in DSO in 2021 suggests a delay in collecting payments from customers, potentially impacting cash flow and liquidity.
- The improvement in DSO in 2022 compared to 2021 shows a positive trend in receivables management.
- In 2023, DSO further decreased, indicating a continued focus on accelerating the collection of receivables and potentially strengthening the company's cash position.
In conclusion, Graphic Packaging Holding Co has shown variability in its DSO metric over the past five years, with efforts made to enhance efficiency in collecting receivables evident in the recent years.
Peer comparison
Dec 31, 2023