Graphic Packaging Holding Company (GPK)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 77.55 | 68.66 | 74.77 | 75.41 | 78.94 |
| Days of sales outstanding (DSO) | days | 32.33 | 33.99 | 43.81 | 36.39 | 29.89 |
| Number of days of payables | days | 48.37 | 48.01 | 60.64 | 55.15 | 51.58 |
| Cash conversion cycle | days | 61.51 | 54.64 | 57.94 | 56.64 | 57.25 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.55 + 32.33 – 48.37
= 61.51
The cash conversion cycle of Graphic Packaging Holding Co has experienced some fluctuations over the past five years. In 2023, the company's cash conversion cycle increased to 65.28 days from 57.15 days in 2022. This indicates that the company took longer to convert its investments in inventory and accounts receivable into cash during the most recent year.
Comparing to the previous years, the cash conversion cycle in 2023 was higher than in 2021 but lower than in 2020 and 2019, suggesting some variability in the efficiency of the company's working capital management. Overall, the trend over the past five years shows some inconsistency in the company's ability to efficiently manage its cash conversion cycle. Further analysis and investigation into the factors influencing these fluctuations would be beneficial to improve the company's working capital efficiency.
Peer comparison
Dec 31, 2023