Graphic Packaging Holding Company (GPK)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 7,699,000 | 7,906,000 | 8,114,000 | 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 |
| Inventory | US$ in thousands | 1,754,000 | 1,748,000 | 1,702,000 | 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 |
| Inventory turnover | 4.39 | 4.52 | 4.77 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,699,000K ÷ $1,754,000K
= 4.39
The inventory turnover ratio of Graphic Packaging Holding Company has shown a fluctuating trend over the past years, indicating the efficiency of the company in managing its inventory. The ratio measures how many times a company sells and replaces its inventory during a specific period.
From December 31, 2019, to December 31, 2024, the inventory turnover ratio fluctuated between 4.33 and 5.45. Generally, a higher ratio indicates that the company is selling its inventory more frequently, which can be a positive sign of efficient inventory management.
During this period, the inventory turnover ratio peaked at 5.45 on June 30, 2021, suggesting a significant improvement in inventory management efficiency at that time. However, the ratio declined thereafter, reaching a low of 4.39 on December 31, 2024.
The variability in the inventory turnover ratio may be influenced by factors such as changes in sales volume, production efficiency, inventory control policies, and market demand. It is essential for the company to monitor and manage its inventory levels effectively to ensure optimal operations and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024