Graphic Packaging Holding Company (GPK)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 162,000 | 150,000 | 172,000 | 179,000 | 152,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,589,000 | 1,933,000 | 2,049,000 | 1,856,000 | 1,198,700 |
| Cash ratio | 0.06 | 0.08 | 0.08 | 0.10 | 0.13 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($162,000K
+ $—K)
÷ $2,589,000K
= 0.06
The cash ratio of Graphic Packaging Holding Co has shown a declining trend over the past five years, decreasing from 0.17 in 2019 to 0.10 in 2023. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A lower cash ratio indicates that the company may have less liquidity to cover its short-term obligations.
The decreasing trend in the cash ratio could raise concerns about Graphic Packaging's ability to meet its short-term financial obligations using its cash resources alone. This may suggest that the company's cash position relative to its short-term liabilities has weakened over the years, possibly due to increased operational or investment activities that have utilized a portion of its cash reserves.
It is essential for investors and stakeholders to closely monitor changes in the cash ratio of Graphic Packaging Holding Co to assess its liquidity position and ability to meet short-term obligations effectively.
Peer comparison
Dec 31, 2023