Graphic Packaging Holding Company (GPK)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,807,000 | 9,428,000 | 9,440,000 | 7,156,000 | 6,560,000 |
| Receivables | US$ in thousands | 759,000 | 835,000 | 879,000 | 859,000 | 654,000 |
| Receivables turnover | 11.60 | 11.29 | 10.74 | 8.33 | 10.03 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,807,000K ÷ $759,000K
= 11.60
Based on the provided data, Graphic Packaging Holding Company's receivables turnover has experienced some fluctuations over the five-year period.
In 2020, the receivables turnover was 10.03, indicating that, on average, the company collected its accounts receivable approximately 10 times during the year.
The ratio decreased to 8.33 in 2021, suggesting a decrease in the efficiency of collecting receivables compared to the previous year. However, this ratio increased significantly in the following years, reaching 10.74 in 2022, 11.29 in 2023, and 11.60 in 2024.
The upward trend in the receivables turnover ratio from 2021 to 2024 indicates that Graphic Packaging Holding Company has been more effective in managing its accounts receivable and collecting payments from customers promptly. This improvement reflects positively on the company's liquidity and efficiency in managing its working capital. It is essential to monitor this ratio closely to ensure that the company maintains its efficiency in collecting outstanding receivables in the future.
Peer comparison
Dec 31, 2024