Graphic Packaging Holding Company (GPK)
Payables 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 |
| Payables | US$ in thousands | 1,094,000 | 944,000 | 996,000 | 1,009,000 | 1,123,000 | 999,000 | 1,008,000 | 1,028,000 | 1,125,000 | 890,000 | 837,000 | 781,000 | 825,000 | 738,500 | 681,800 | 625,700 | 716,100 | 628,700 | 644,700 | 612,800 |
| Payables turnover | 7.53 | 8.90 | 8.53 | 8.41 | 7.52 | 8.25 | 7.69 | 7.09 | 6.02 | 7.01 | 7.19 | 7.33 | 6.62 | 7.20 | 7.61 | 8.16 | 7.08 | 8.11 | 7.84 | 8.26 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,236,000K ÷ $1,094,000K
= 7.53
The payables turnover ratio measures how efficiently a company manages its accounts payables by analyzing how many times during a specific period the company pays off its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
Based on the data provided for Graphic Packaging Holding Co, the payables turnover ratio has varied over the past eight quarters. The ratio ranges from a low of 6.36 in Q1 2022 to a high of 7.90 in Q3 2023. Overall, the payables turnover ratio has shown a generally increasing trend from Q1 2022 to Q3 2023, which suggests that the company has been more efficient at managing its accounts payables during this period.
The increase in the payables turnover ratio indicates that Graphic Packaging Holding Co has been paying off its suppliers at a faster rate compared to previous quarters. This could be a positive sign, as a higher payables turnover ratio may indicate better cash flow management, stronger supplier relationships, or more efficient operations.
However, it is important to consider the industry norms and benchmarks while evaluating the payables turnover ratio to determine if the company is performing well relative to its peers. Additionally, further analysis incorporating other financial ratios and qualitative factors would provide a more comprehensive assessment of Graphic Packaging Holding Co's overall financial health and performance.
Peer comparison
Dec 31, 2023