Graphic Packaging Holding Company (GPK)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,428,000 | 9,565,000 | 9,667,000 | 9,633,000 | 9,440,000 | 9,042,000 | 8,373,000 | 7,752,000 | 7,156,000 | 6,820,100 | 6,736,100 | 6,610,100 | 6,560,100 | 6,427,800 | 6,311,400 | 6,253,200 | 6,160,100 | 6,149,600 | 6,099,800 | 6,057,900 |
| Receivables | US$ in thousands | 835,000 | 881,000 | 933,000 | 915,000 | 879,000 | 888,000 | 950,000 | 945,000 | 859,000 | 643,000 | 593,000 | 586,000 | 654,000 | 743,400 | 692,400 | 624,800 | 504,500 | 591,900 | 639,900 | 647,900 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $9,428,000K ÷ $835,000K
= 11.29
The receivables turnover of Graphic Packaging Holding Co has shown a generally increasing trend over the past eight quarters, ranging from 8.20 in Q1 2022 to 11.29 in Q4 2023. This indicates that the company has been more efficient in collecting payments from its customers over time. The consistent improvement in receivables turnover suggests that the company has been managing its accounts receivable effectively and converting credit sales into cash at a faster rate.
The average receivables turnover ratio over the eight quarters is approximately 10.36, reflecting the company's ability to collect outstanding receivables more than ten times a year on average. A high receivables turnover ratio is typically favorable as it indicates that the company is collecting payments quickly, minimizing the risk of bad debts and improving cash flow.
Overall, the increasing trend in Graphic Packaging Holding Co's receivables turnover ratio demonstrates its effective credit and collection policies, efficient management of accounts receivable, and strong customer payment practices. This consistent improvement suggests a healthy liquidity position and efficient working capital management by the company.
Peer comparison
Dec 31, 2023