Graphic Packaging Holding Company (GPK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 162,000 | 150,000 | 172,000 | 179,000 | 152,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 835,000 | 879,000 | 859,000 | 654,000 | 504,500 |
| Total current liabilities | US$ in thousands | 2,589,000 | 1,933,000 | 2,049,000 | 1,856,000 | 1,198,700 |
| Quick ratio | 0.39 | 0.53 | 0.50 | 0.45 | 0.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($162,000K
+ $—K
+ $835,000K)
÷ $2,589,000K
= 0.39
The quick ratio of Graphic Packaging Holding Co has fluctuated over the past five years. The ratio indicates the company's ability to meet its short-term obligations with its most liquid assets. A decreasing trend in the quick ratio from 0.59 in 2019 to 0.42 in 2023 suggests a potential weakening in the company's short-term liquidity position.
While the quick ratio was relatively higher in 2022 and 2021 at 0.57 and 0.54, respectively, compared to 2020 and 2019, it subsequently declined in 2023. This declining trend warrants further investigation into the company's current asset and liability management as well as its ongoing operations efficiency.
It appears that Graphic Packaging Holding Co may need to improve its ability to cover immediate financial obligations with its liquid assets to enhance its overall liquidity position and operational resilience. Further analysis into the specific components affecting the quick ratio would provide deeper insights into the company's financial health.
Peer comparison
Dec 31, 2023