Graphic Packaging Holding Company (GPK)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 9,428,000 9,565,000 9,667,000 9,633,000 9,440,000 9,042,000 8,373,000 7,752,000 7,156,000 6,820,100 6,736,100 6,610,100 6,560,100 6,427,800 6,311,400 6,253,200 6,160,100 6,149,600 6,099,800 6,057,900
Property, plant and equipment US$ in thousands 4,992,000 4,799,000 4,753,000 4,678,000 4,579,000 4,509,000 4,601,000 4,675,000 4,677,000 4,020,000 3,753,000 3,631,000 3,560,000 3,437,400 3,379,400 3,288,100 3,253,800 3,208,000 3,199,400 3,204,800
Fixed asset turnover 1.89 1.99 2.03 2.06 2.06 2.01 1.82 1.66 1.53 1.70 1.79 1.82 1.84 1.87 1.87 1.90 1.89 1.92 1.91 1.89

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,428,000K ÷ $4,992,000K
= 1.89

The fixed asset turnover ratio of Graphic Packaging Holding Co over the past eight quarters has shown a trend of fluctuation. The ratio measures the company's efficiency in generating net sales revenue with its fixed assets.

In Q4 2023, the fixed asset turnover was 1.89, slightly lower compared to the previous quarter at 1.99. However, this ratio has generally been above 1.8 over the past year, indicating that the company is effectively utilizing its fixed assets to generate sales.

The highest fixed asset turnover ratio of 2.06 was observed in Q1 2023 and Q4 2022. This suggests that Graphic Packaging Holding Co was able to generate more sales relative to its investment in fixed assets during these periods.

Overall, the fluctuation in the fixed asset turnover ratio may be a result of changes in sales performance or adjustments in the company's fixed asset base. Monitoring the trend of this ratio can provide insights into the company's operational efficiency and asset utilization over time.


Peer comparison

Dec 31, 2023

Company name
Symbol
Fixed asset turnover
Graphic Packaging Holding Company
GPK
1.89
Packaging Corp of America
PKG
2.00
Smurfit WestRock plc
SW
Sonoco Products Company
SON
3.58