Graphic Packaging Holding Company (GPK)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 157,000 | 162,000 | 150,000 | 172,000 | 179,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,903,000 | 2,589,000 | 1,933,000 | 2,049,000 | 1,856,000 |
| Cash ratio | 0.08 | 0.06 | 0.08 | 0.08 | 0.10 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($157,000K
+ $—K)
÷ $1,903,000K
= 0.08
The cash ratio of Graphic Packaging Holding Company has shown a slight decrease from 0.10 as of December 31, 2020, to 0.08 as of December 31, 2021, which remained constant at 0.08 as of December 31, 2022, and then decreased to 0.06 by December 31, 2023. However, the ratio improved to 0.08 as of December 31, 2024.
The cash ratio is a financial metric that indicates a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio signifies a stronger ability to meet short-term obligations, while a lower ratio may indicate liquidity challenges.
While the cash ratio of Graphic Packaging Holding Company fluctuated over the years, it is essential to consider the industry norms and peer comparison to assess the company's liquidity position accurately. A consistent monitoring of the cash ratio is crucial for evaluating the company's financial health and liquidity management strategies.
Peer comparison
Dec 31, 2024