Graphic Packaging Holding Company (GPK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.50% | 12.44% | 9.56% | 5.38% | 16.77% |
| Operating profit margin | 12.71% | 12.45% | 9.60% | 5.69% | 7.99% |
| Pretax margin | 10.07% | 9.90% | 7.58% | 3.88% | 3.19% |
| Net profit margin | 7.47% | 7.67% | 5.53% | 2.85% | 2.55% |
The profitability ratios of Graphic Packaging Holding Company have shown some fluctuations over the years. Starting with the gross profit margin, the company's performance improved from 2021 to 2023, with a significant increase from 5.38% in 2021 to 12.44% in 2023, indicating better cost management and pricing strategies. However, there was a slight dip in the gross profit margin in 2024 to 12.50%.
Moving on to the operating profit margin, Graphic Packaging had a decrease in 2021 compared to 2020, but then showed consistent improvement from 2021 to 2024, reaching 12.71%. This suggests that the company efficiently managed its operating expenses and generated better profits from its core business operations.
Looking at the pretax margin, there was a steady improvement over the years, indicating that Graphic Packaging effectively controlled its pre-tax expenses and increased profitability before taxes. The pretax margin increased from 3.88% in 2021 to 10.07% in 2024, showcasing a positive trend.
Lastly, the net profit margin also saw a gradual increase from 2020 to 2024. This indicates that after accounting for all expenses, including taxes, Graphic Packaging was able to improve its bottom line profitability. The net profit margin rose from 2.85% in 2021 to 7.47% in 2024, reflecting the company's ability to generate more profit from its operations.
Overall, the profitability ratios of Graphic Packaging Holding Company show a positive trend in improving margins over the years, indicating effective cost management and operational performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.04% | 10.51% | 8.77% | 3.89% | 6.71% |
| Return on assets (ROA) | 5.90% | 6.47% | 5.05% | 1.95% | 2.14% |
| Return on total capital | 13.72% | 15.86% | 12.42% | 5.41% | 7.39% |
| Return on equity (ROE) | 21.85% | 26.00% | 24.29% | 10.79% | 11.73% |
Graphic Packaging Holding Company's profitability ratios show fluctuations over the years. The Operating return on assets (Operating ROA) decreased from 6.71% in December 2020 to 3.89% in December 2021 but then showed an increasing trend, reaching 10.04% by December 2024. This indicates that the company's operating income generated from its assets varied over time, with a significant improvement by the end of the period.
Similarly, the Return on assets (ROA) also experienced fluctuations, starting at 2.14% in December 2020, decreasing to 1.95% in December 2021, and then gradually increasing to 5.90% by December 2024. This metric reflects the overall profitability of the company relative to its total assets, showing an improvement in generating profits from its asset base by the end of the period.
The Return on total capital started at 7.39% in December 2020, decreased to 5.41% in December 2021, and then experienced significant growth to 13.72% by December 2024. This ratio demonstrates the company's ability to generate returns for both debt and equity investors, showing a positive trend in capital efficiency and profitability over time.
Lastly, the Return on equity (ROE) for Graphic Packaging Holding Company showed a similar pattern, with a decline from 11.73% in December 2020 to 10.79% in December 2021, followed by a notable increase to 21.85% by December 2024. This metric indicates the company's profitability in relation to the shareholders' equity, with a positive trajectory towards the end of the period.
Overall, the profitability ratios of Graphic Packaging Holding Company suggest a mixed performance over the years, with improvements in profitability metrics towards the later years of the period, showcasing the company's ability to enhance its operational efficiency and generate higher returns for its investors.