Graphic Packaging Holding Company (GPK)
Payables 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 |
| Payables | US$ in thousands | 1,094,000 | 1,123,000 | 1,125,000 | 825,000 | 716,100 |
| Payables turnover | 7.55 | 7.60 | 6.02 | 6.62 | 7.08 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,255,000K ÷ $1,094,000K
= 7.55
Based on the data provided, Graphic Packaging Holding Co's payables turnover has shown fluctuations over the past five years. The payables turnover ratio decreased from 7.08 in 2019 to 5.41 in 2021, indicating a longer time taken to pay off its trade payables during that year. However, there was a slight recovery in 2022 with a ratio of 6.78 but then a decrease again to 6.68 in 2023.
The decreasing trend may suggest potential issues with managing payables efficiently or negotiating favorable credit terms with suppliers. A lower payables turnover ratio could also indicate stretched liquidity or financial difficulties, as the company may be struggling to settle its payables promptly.
It is essential for the company to closely monitor its payables turnover ratio and work towards optimizing its payment processes and maintaining healthy relationships with suppliers to ensure timely payments while also maximizing cash flow and profitability.
Peer comparison
Dec 31, 2023