Graphic Packaging Holding Company (GPK)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,706,000 | 8,255,000 | 8,538,000 | 6,771,000 | 5,459,800 |
| Payables | US$ in thousands | 1,116,000 | 1,094,000 | 1,123,000 | 1,125,000 | 825,000 |
| Payables turnover | 6.91 | 7.55 | 7.60 | 6.02 | 6.62 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,706,000K ÷ $1,116,000K
= 6.91
The payables turnover ratio for Graphic Packaging Holding Company has demonstrated a fluctuating trend over the past five years. Starting at 6.62 in December 2020, the ratio decreased to 6.02 by December 2021, indicating a slower rate of paying off its creditors. However, the company improved its payables turnover performance in the subsequent years, reaching 7.60 in December 2022 and 7.55 in December 2023, suggesting a more efficient management of accounts payable. Despite a slight decline to 6.91 in December 2024, the company's ability to convert its accounts payable into cash remains relatively strong overall. This indicates that Graphic Packaging Holding Company has been effectively managing its payable obligations in recent years, with the latest ratio suggesting room for further optimization in its payables turnover process.
Peer comparison
Dec 31, 2024