Graphic Packaging Holding Company (GPK)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,807,000 | 9,428,000 | 9,440,000 | 7,156,000 | 6,560,000 |
| Property, plant and equipment | US$ in thousands | 5,258,000 | 4,992,000 | 4,579,000 | 4,677,000 | 3,560,000 |
| Fixed asset turnover | 1.67 | 1.89 | 2.06 | 1.53 | 1.84 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,807,000K ÷ $5,258,000K
= 1.67
The fixed asset turnover ratio for Graphic Packaging Holding Company has shown some fluctuations over the past five years.
In 2020, the fixed asset turnover was 1.84, indicating that the company generated $1.84 in sales for every dollar invested in fixed assets during that year. The ratio decreased to 1.53 in 2021, suggesting a lower level of efficiency in utilizing fixed assets to generate revenue.
However, there was a significant improvement in 2022, with the fixed asset turnover ratio increasing to 2.06, demonstrating a more efficient use of fixed assets to drive sales. This improvement was not sustained in 2023 as the ratio dropped to 1.89, although it still remained above the 2021 level.
In the most recent year, 2024, the fixed asset turnover ratio decreased further to 1.67, indicating a decline in the company's ability to generate sales from its fixed asset base compared to the previous year.
Overall, while there have been fluctuations in Graphic Packaging Holding Company's fixed asset turnover ratio over the past five years, it is important for the company to focus on optimizing the utilization of its fixed assets to drive revenue growth in a more consistent manner.
Peer comparison
Dec 31, 2024