Graphic Packaging Holding Company (GPK)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,428,000 | 9,440,000 | 7,156,000 | 6,560,000 | 6,160,000 |
| Total assets | US$ in thousands | 11,175,000 | 10,328,000 | 10,457,000 | 7,805,000 | 7,290,000 |
| Total asset turnover | 0.84 | 0.91 | 0.68 | 0.84 | 0.84 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $9,428,000K ÷ $11,175,000K
= 0.84
The total asset turnover ratio for Graphic Packaging Holding Co over the last five years has varied, ranging from 0.68 to 0.91. This ratio indicates how efficiently the company is generating sales revenue from its total assets. A higher total asset turnover ratio suggests that the company is using its assets more efficiently to generate revenue.
In 2023, the total asset turnover ratio decreased to 0.84 from 0.91 in 2022. This could imply that the company may have experienced challenges in generating sales relative to its total assets. However, the ratio was still higher than the 2021 figure of 0.68, indicating an improvement in asset utilization efficiency compared to the previous year.
Comparing the 2023 ratio to the ratios in 2020 and 2019, which were also 0.84 and 0.85 respectively, it appears that Graphic Packaging Holding Co has been relatively consistent in its ability to generate revenue from its total assets over the past few years.
Overall, while the current total asset turnover ratio showed a slight decline, it is important for the company to continue monitoring this ratio to ensure optimal asset utilization and efficiency in generating revenue.
Peer comparison
Dec 31, 2023