Graphic Packaging Holding Company (GPK)
Working capital 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 current assets | US$ in thousands | 2,845,000 | 2,706,000 | 2,502,000 | 2,020,000 | 1,805,600 |
| Total current liabilities | US$ in thousands | 2,589,000 | 1,933,000 | 2,049,000 | 1,856,000 | 1,198,700 |
| Working capital turnover | 36.83 | 12.21 | 15.80 | 40.00 | 10.15 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,428,000K ÷ ($2,845,000K – $2,589,000K)
= 36.83
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher ratio indicates that the company is effectively managing its working capital.
Looking at the trend for Graphic Packaging Holding Co's working capital turnover over the past five years, we observe fluctuations. In 2023, the working capital turnover ratio spiked to 36.83, significantly higher than the previous year, indicating a substantial improvement in the company's efficiency in converting its working capital into sales.
In contrast, in 2022, the ratio dropped to 12.21, suggesting potential inefficiencies in managing working capital compared to the year before. However, in 2021, the ratio increased to 15.80, pointing towards a recovery in utilizing working capital efficiently.
The year 2020 saw a significantly high working capital turnover ratio of 40.10, indicating exceptional efficiency in utilizing working capital to generate sales. On the other hand, in 2019, the ratio was lower at 10.15, implying a relatively lower efficiency in converting working capital into sales compared to other years.
Overall, Graphic Packaging Holding Co's working capital turnover ratio has exhibited fluctuations over the past five years. Stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's working capital management strategies and financial performance.
Peer comparison
Dec 31, 2023