Graphic Packaging Holding Company (GPK)
Quick ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 162,000 | 146,000 | 125,000 | 113,000 | 150,000 | 82,000 | 108,000 | 111,000 | 172,000 | 67,000 | 89,000 | 116,000 | 179,000 | 55,500 | 83,600 | 110,200 | 152,900 | 48,700 | 64,700 | 62,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 835,000 | 881,000 | 933,000 | 915,000 | 879,000 | 888,000 | 950,000 | 945,000 | 859,000 | 643,000 | 593,000 | 586,000 | 654,000 | 743,400 | 692,400 | 624,800 | 504,500 | 591,900 | 639,900 | 647,900 |
| Total current liabilities | US$ in thousands | 2,589,000 | 2,438,000 | 2,137,000 | 1,735,000 | 1,933,000 | 2,032,000 | 2,008,000 | 1,946,000 | 2,049,000 | 1,499,000 | 1,457,000 | 1,318,000 | 1,856,000 | 1,719,700 | 1,612,800 | 1,044,000 | 1,198,700 | 1,091,800 | 1,094,000 | 1,022,200 |
| Quick ratio | 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 | 0.59 | 0.64 | 0.69 |
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 exhibited some fluctuations over the past eight quarters, ranging from a low of 0.42 in Q4 2023 to a high of 0.64 in Q1 2023. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets and excludes inventory from current assets.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations if they all came due at once. The trend of the quick ratio over the past quarters shows a generally declining pattern, reflecting a potential deterioration in the company's liquidity position.
While the quick ratio of 0.42 in Q4 2023 is concerning as it indicates that the company may not have sufficient liquid assets to cover its current liabilities, it is important to note that the quick ratio should be interpreted in conjunction with other liquidity ratios and with an understanding of the company's industry and business model.
Further analysis should be conducted to assess the reasons behind the decline in the quick ratio and to determine if there are any underlying issues affecting the company's liquidity position that may warrant attention from investors and stakeholders.
Peer comparison
Dec 31, 2023