Graphic Packaging Holding Company (GPK)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,255,000 | 8,538,000 | 6,771,000 | 5,459,800 | 5,067,400 |
| Inventory | US$ in thousands | 1,754,000 | 1,606,000 | 1,387,000 | 1,128,000 | 1,095,900 |
| Inventory turnover | 4.71 | 5.32 | 4.88 | 4.84 | 4.62 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,255,000K ÷ $1,754,000K
= 4.71
Inventory turnover measures how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio indicates that the company is efficiently managing its inventory levels and selling products quickly. The inventory turnover for Graphic Packaging Holding Co has fluctuated over the past five years, ranging from 4.17 to 4.84.
The decreasing trend in inventory turnover from 2020 to 2023 suggests that the company may be holding onto inventory for a longer period or experiencing challenges in selling products quickly. It is important for the company to monitor and analyze the reasons behind the decrease in inventory turnover to ensure optimal inventory management. Additionally, industry benchmarks can be used to evaluate whether the company's inventory turnover is in line with its peers.
Peer comparison
Dec 31, 2023