Graphic Packaging Holding Company (GPK)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,819,000 | 9,073,000 | 9,249,000 | 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 |
| Total current assets | US$ in thousands | 2,784,000 | 2,990,000 | 2,923,000 | 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 |
| Total current liabilities | US$ in thousands | 1,903,000 | 1,729,000 | 2,366,000 | 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 |
| Working capital turnover | 10.01 | 7.20 | 16.61 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,819,000K ÷ ($2,784,000K – $1,903,000K)
= 10.01
The working capital turnover of Graphic Packaging Holding Company has shown fluctuations over the years, indicating changes in the efficiency of the company in managing its working capital.
The working capital turnover ratio is a measure of how efficiently a company is using its working capital to generate revenue. A higher working capital turnover ratio suggests more effective utilization of working capital.
It is observed that the working capital turnover ratio was relatively stable in the range of 10 to 15 from December 2019 to December 2021. However, there was a notable increase at the end of December 2021, reaching 15.80, indicating a significant improvement in working capital efficiency at that time.
The ratio experienced fluctuations in the following periods, with peaks and lows observed in September 2022 (14.82) and March 2023 (8.94) respectively. These variations may suggest changes in the company's operating cycle or how efficiently it was managing its working capital during these periods.
The working capital turnover ratio spiked notably at the end of September 2023, reaching 22.77, and then again at the end of December 2023, peaking at 36.83. These spikes suggest a significant improvement in the company's ability to generate revenue from its working capital during these periods.
However, there was a notable decline in the working capital turnover ratio in the subsequent periods, with values dropping to 7.20 at the end of September 2024. This decline may indicate challenges or changes in the company's working capital management practices.
Overall, the trend in Graphic Packaging Holding Company's working capital turnover ratio shows variability over time, reflecting fluctuations in how efficiently the company is converting its working capital into sales revenue. It is important for the company to closely monitor and manage its working capital to sustain and improve its operational efficiency and financial performance.
Peer comparison
Dec 31, 2024