Graphic Packaging Holding Company (GPK)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,845,000 | 2,706,000 | 2,502,000 | 2,020,000 | 1,805,600 |
| Total current liabilities | US$ in thousands | 2,589,000 | 1,933,000 | 2,049,000 | 1,856,000 | 1,198,700 |
| Current ratio | 1.10 | 1.40 | 1.22 | 1.09 | 1.51 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,845,000K ÷ $2,589,000K
= 1.10
The current ratio of Graphic Packaging Holding Co has fluctuated over the past five years, indicating changes in its short-term liquidity position. As of December 31, 2023, the current ratio stands at 1.10, which suggests that the company may have a more constrained ability to meet its short-term obligations with its current assets. This represents a decrease from the previous year's ratio of 1.40.
The downward trend in the current ratio since 2019 may raise concerns about the company's liquidity management and ability to cover its current liabilities with current assets. A ratio below 1.0 would indicate that the company may struggle to meet its short-term obligations.
Further analysis of the components of current assets and current liabilities is necessary to understand the drivers behind the changes in the current ratio. Monitoring the trend of the current ratio over time will be crucial for assessing Graphic Packaging Holding Co's short-term liquidity position and financial health.
Peer comparison
Dec 31, 2023