Graphic Packaging Holding Company (GPK)

Liquidity ratios

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
Current ratio 1.46 1.73 1.24 1.10 1.17 1.36 1.62 1.40 1.30 1.34 1.37 1.22 1.31 1.29 1.45 1.09 1.17 1.27 1.86 1.51
Quick ratio 0.48 0.63 0.43 0.39 0.42 0.50 0.59 0.53 0.48 0.53 0.54 0.50 0.47 0.47 0.53 0.45 0.46 0.48 0.70 0.55
Cash ratio 0.08 0.07 0.06 0.06 0.06 0.06 0.07 0.08 0.04 0.05 0.06 0.08 0.04 0.06 0.09 0.10 0.03 0.05 0.11 0.13

Graphic Packaging Holding Company's liquidity ratios show the following trends:

1. Current Ratio: The current ratio for the company has fluctuated over the years but generally remained above 1, indicating a healthy liquidity position. It peaked at 1.86 on March 31, 2020, and reached its lowest point at 1.09 on December 31, 2020. As of December 31, 2024, the current ratio stood at 1.46, suggesting the company has sufficient current assets to cover its current liabilities.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, reflects the company's ability to meet its short-term obligations with its most liquid assets. The ratio has varied between 0.39 and 0.70 during the period under review. While there were fluctuations, the quick ratio generally indicates that the company may face some challenges in meeting its short-term obligations promptly.

3. Cash Ratio: The cash ratio provides insight into the company's ability to pay off its current liabilities using only its cash and cash equivalents. Graphic Packaging Holding Company's cash ratio has ranged from 0.03 to 0.13, with the lowest point recorded on September 30, 2020. The company's ability to cover its current liabilities solely with cash has improved slightly over time, reaching 0.08 as of December 31, 2024.

In summary, Graphic Packaging Holding Company has maintained a current ratio above 1, indicating overall good liquidity, though there have been fluctuations. However, the quick ratio and cash ratio show some challenges in the company's ability to meet its short-term obligations with its most liquid assets. Management may need to monitor these ratios closely to ensure the company's liquidity remains at a healthy level.

Additional liquidity measure

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
Cash conversion cycle days 61.66 76.50 68.93 61.58 68.25 66.71 64.40 54.86 60.88 66.12 68.34 57.94 51.43 48.38 54.30 56.64 70.72 76.31 73.45 57.25

The cash conversion cycle of Graphic Packaging Holding Company has shown some fluctuations over the past years. In December 2019, the company had a cash conversion cycle of 57.25 days, which increased to 76.31 days by June 2020. However, the company managed to reduce this figure to 48.38 days by June 2021, indicating an improvement in managing its cash flow and working capital.

Subsequently, the cash conversion cycle increased slightly to 68.34 days by March 2022, but by December 2022, the company was able to lower it to 54.86 days. The trend continued with fluctuations, as the cycle increased to 68.93 days in March 2024, and further to 76.50 days by September 2024. However, by the end of December 2024, Graphic Packaging managed to bring this figure back down to 61.66 days.

Overall, the company has shown the ability to effectively manage its cash conversion cycle, with fluctuations occurring but ultimately maintaining at manageable levels. Focusing on maintaining a lower cash conversion cycle can help the company improve liquidity and optimize its working capital management in the future.