Graphic Packaging Holding Company (GPK)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.60 | 11.29 | 10.74 | 8.33 | 10.03 | |
| DSO | days | 31.46 | 32.33 | 33.99 | 43.81 | 36.39 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.60
= 31.46
Days of Sales Outstanding (DSO) for Graphic Packaging Holding Company have demonstrated a generally favorable trend over the past five years. In December 2020, the company's DSO stood at 36.39 days, indicating that on average, it took approximately 36 days for the company to collect outstanding sales revenue.
By December 2021, the DSO had increased to 43.81 days, suggesting a slight delay in collecting receivables compared to the previous year. However, the company managed to improve its collection efficiency in the following years, as evidenced by the decrease in DSO to 33.99 days in December 2022, 32.33 days in December 2023, and 31.46 days in December 2024.
The declining trend in DSO is a positive indicator as it signifies that Graphic Packaging Holding Company has been successful in managing its accounts receivable more effectively, potentially indicating more timely collections and a healthier cash flow position. Overall, the company's DSO trend reflects improved working capital management and financial efficiency over the five-year period.
Peer comparison
Dec 31, 2024