Graphic Packaging Holding Company (GPK)
Working capital 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 |
| Total current assets | US$ in thousands | 2,845,000 | 2,858,000 | 2,901,000 | 2,812,000 | 2,706,000 | 2,642,000 | 2,684,000 | 2,657,000 | 2,502,000 | 1,969,000 | 1,877,000 | 1,911,000 | 2,020,000 | 2,018,400 | 2,050,000 | 1,938,300 | 1,805,600 | 1,771,000 | 1,860,800 | 1,836,900 |
| Total current liabilities | US$ in thousands | 2,589,000 | 2,438,000 | 2,137,000 | 1,735,000 | 1,933,000 | 2,032,000 | 2,008,000 | 1,946,000 | 2,049,000 | 1,499,000 | 1,457,000 | 1,318,000 | 1,856,000 | 1,719,700 | 1,612,800 | 1,044,000 | 1,198,700 | 1,091,800 | 1,094,000 | 1,022,200 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,428,000K ÷ ($2,845,000K – $2,589,000K)
= 36.83
The working capital turnover of Graphic Packaging Holding Co has shown fluctuating trends over the past eight quarters. In Q4 2023, the working capital turnover ratio significantly increased to 36.83, indicating that the company generated $36.83 in net sales for every dollar of working capital invested. This represents a substantial improvement compared to the previous three quarters, where the ratios were comparatively lower at 22.77, 12.65, and 8.94, respectively.
The company's working capital turnover was relatively stable between Q4 2022 and Q3 2022, ranging from 12.21 to 14.82. However, there was a noticeable decrease in Q2 2022 to 12.39, followed by a slight increase in Q1 2022 to 10.90. This suggests that Graphic Packaging Holding Co's efficiency in utilizing its working capital to generate revenues varied throughout the given period.
Overall, the significant improvement in the working capital turnover in Q4 2023 may indicate enhanced operational efficiency and effective management of working capital. However, the variability in the ratios over the quarters highlights the need for continued monitoring and assessment of the company's working capital management strategies.
Peer comparison
Dec 31, 2023