Graphic Packaging Holding Company (GPK)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 11.29 10.86 10.36 10.53 10.74 10.18 8.81 8.20 8.33 10.61 11.36 11.28 10.03 8.65 9.12 10.01 12.21 10.39 9.53 9.35
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
Working capital turnover 36.83 22.77 12.65 8.94 12.21 14.82 12.39 10.90 15.80 14.51 16.04 11.15 40.00 21.52 14.44 6.99 10.15 9.05 7.95 7.44

Inventory turnover for Graphic Packaging Holding Co has been relatively stable over the past eight quarters, ranging from 4.17 to 4.74. This indicates that the company is efficient in managing its inventory levels and converting them into sales. Receivables turnover has also shown consistency over the same period, ranging from 8.20 to 11.29. This suggests that the company is effective in collecting outstanding receivables from customers.

On the other hand, payables turnover has fluctuated between 6.36 and 7.90, reflecting variations in the company's ability to manage its payables effectively. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships.

The working capital turnover ratio has shown significant variability, ranging from 8.94 to 36.83. The higher ratios indicate that the company is effectively utilizing its working capital to generate sales revenue. However, the fluctuation in this ratio suggests that the company's working capital management may not be consistent quarter to quarter.

In conclusion, Graphic Packaging Holding Co demonstrates good efficiency in managing its inventory and receivables, but it may need to focus on improving consistency in its payables management and working capital turnover.

Average number of days

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
Days of inventory on hand (DOH) days 77.73 75.64 74.25 73.14 69.40 69.29 72.15 75.34 74.77 69.06 67.01 71.75 75.41 79.20 84.22 81.71 78.94 77.00 79.39 77.28
Days of sales outstanding (DSO) days 32.33 33.62 35.23 34.67 33.99 35.85 41.41 44.49 43.81 34.41 32.13 32.36 36.39 42.21 40.04 36.47 29.89 35.13 38.29 39.04
Number of days of payables days 48.48 41.01 42.77 43.41 48.53 44.26 47.44 51.50 60.64 52.04 50.76 49.81 55.15 50.70 47.95 44.73 51.58 45.03 46.55 44.18

Graphic Packaging Holding Co's activity ratios reflect its efficiency in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
- The DOH has been increasing steadily over the past several quarters, indicating that the company is holding inventory for a longer period before turning it into sales.
- The increase in DOH suggests that Graphic Packaging may need to optimize its inventory management to avoid potential storage costs and obsolescence.

2. Days of Sales Outstanding (DSO):
- DSO has shown some fluctuations but has generally been decreasing over the quarters, which is a positive sign indicating that the company is collecting receivables more efficiently.
- The decreasing trend in DSO implies that Graphic Packaging is converting credit sales to cash more quickly, enhancing its liquidity position.

3. Number of Days of Payables:
- The number of days of payables has varied over the quarters but has generally been decreasing, indicating that the company is taking longer to pay its suppliers.
- While delaying payments to suppliers can improve cash flow, it may also strain relationships with vendors if not managed effectively.

In conclusion, Graphic Packaging Holding Co may need to focus on improving its inventory management to reduce DOH, while continuing to efficiently collect receivables. The company should also carefully balance extending payment terms to suppliers to maintain good relationships while managing its working capital effectively.

Long-term

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
Fixed asset turnover 1.89 1.99 2.03 2.06 2.06 2.01 1.82 1.66 1.53 1.70 1.79 1.82 1.84 1.87 1.87 1.90 1.89 1.92 1.91 1.89
Total asset turnover 0.84 0.88 0.90 0.91 0.91 0.89 0.81 0.74 0.68 0.82 0.86 0.85 0.84 0.84 0.82 0.84 0.85 0.85 0.84 0.83

The fixed asset turnover ratio for Graphic Packaging Holding Co has been declining slightly over the past quarters, from 2.06 in Q4 2022 to 1.89 in Q4 2023. This indicates that the company is generating less revenue for each dollar invested in fixed assets. However, the ratio remains relatively stable around the 2.00 mark, suggesting that the company is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio shows a similar trend, decreasing from 0.91 in Q4 2022 to 0.84 in Q4 2023. This indicates that the company is generating less revenue for each dollar invested in total assets. The decline in the total asset turnover ratio may be attributed to changes in the company's sales volume or asset base.

In conclusion, while the fixed asset turnover ratio for Graphic Packaging Holding Co remains relatively stable, the total asset turnover ratio has shown a declining trend. Further analysis of the company's operations and asset management practices may provide insights into the factors affecting these ratios.