Graphic Packaging Holding Company (GPK)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 157,000 | 162,000 | 150,000 | 172,000 | 179,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 759,000 | 835,000 | 879,000 | 859,000 | 654,000 |
| Total current liabilities | US$ in thousands | 1,903,000 | 2,589,000 | 1,933,000 | 2,049,000 | 1,856,000 |
| Quick ratio | 0.48 | 0.39 | 0.53 | 0.50 | 0.45 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($157,000K
+ $—K
+ $759,000K)
÷ $1,903,000K
= 0.48
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. From the data provided for Graphic Packaging Holding Company, the trend in the quick ratio over the past five years is as follows:
- December 31, 2020: 0.45
- December 31, 2021: 0.50
- December 31, 2022: 0.53
- December 31, 2023: 0.39
- December 31, 2024: 0.48
The quick ratio has shown some fluctuation over the years, with an overall increasing trend from 2020 to 2022, indicating an improvement in the company's ability to cover its short-term liabilities with its liquid assets. However, there was a decrease in 2023 followed by a slight recovery in 2024.
A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations without relying on selling inventory. In this case, Graphic Packaging Holding Company's quick ratios fall below 1, indicating a potential liquidity risk. It is important for investors and stakeholders to monitor this ratio closely to ensure the company can manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024