Graphic Packaging Holding Company (GPK)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,236,000 | 8,401,000 | 8,499,000 | 8,484,000 | 8,447,000 | 8,239,000 | 7,755,000 | 7,286,000 | 6,771,000 | 6,242,300 | 6,018,800 | 5,722,700 | 5,459,900 | 5,317,100 | 5,189,800 | 5,105,900 | 5,067,500 | 5,096,600 | 5,054,900 | 5,063,300 |
| Inventory | US$ in thousands | 1,754,000 | 1,741,000 | 1,729,000 | 1,700,000 | 1,606,000 | 1,564,000 | 1,533,000 | 1,504,000 | 1,387,000 | 1,181,000 | 1,105,000 | 1,125,000 | 1,128,000 | 1,153,800 | 1,197,500 | 1,143,000 | 1,095,900 | 1,075,200 | 1,099,500 | 1,072,000 |
| Inventory turnover | 4.70 | 4.83 | 4.92 | 4.99 | 5.26 | 5.27 | 5.06 | 4.84 | 4.88 | 5.29 | 5.45 | 5.09 | 4.84 | 4.61 | 4.33 | 4.47 | 4.62 | 4.74 | 4.60 | 4.72 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,236,000K ÷ $1,754,000K
= 4.70
Inventory turnover is an important financial ratio that measures the efficiency with which a company manages its inventory. It indicates how many times a company's inventory is sold and replaced over a certain period. A higher inventory turnover ratio generally signifies that a company is selling its inventory quickly and efficiently.
Based on the data provided for Graphic Packaging Holding Co, we observe that the inventory turnover ratio has exhibited a fluctuating trend over the past eight quarters. The inventory turnover ratios range from 4.17 in Q4 2023 to 4.74 in Q4 2022.
The downward trend from Q4 2022 (4.74) to Q1 2023 (4.49) suggests a slight decrease in the efficiency of inventory turnover during that period. However, there is a subsequent increase in inventory turnover from Q1 2023 (4.49) to Q4 2023 (4.17), indicating a potential improvement in managing inventory levels and sales during the most recent quarter.
Overall, Graphic Packaging Holding Co has maintained relatively consistent inventory turnover ratios above 4.0 over the analyzed period, which is considered a favorable sign in terms of managing inventory efficiently. Further analysis and comparison with industry benchmarks could provide additional insights into the company's inventory management practices.
Peer comparison
Dec 31, 2023
Dec 31, 2023