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

Company name
Symbol
Quick ratio
Graphic Packaging Holding Company
GPK
0.39
Packaging Corp of America
PKG
1.72
Smurfit WestRock plc
SW
2.25
Sonoco Products Company
SON
0.91