Graphic Packaging Holding Company (GPK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.44% | 9.56% | 5.38% | 16.77% | 17.74% |
| Operating profit margin | 12.45% | 9.60% | 5.69% | 7.99% | 8.67% |
| Pretax margin | 9.90% | 7.58% | 3.88% | 3.19% | 4.59% |
| Net profit margin | 7.67% | 5.53% | 2.85% | 2.55% | 3.36% |
Graphic Packaging Holding Co has shown improvement in profitability over the years as reflected in its profitability ratios. The gross profit margin has been increasing steadily, reaching 22.45% in 2023 from 17.74% in 2019, indicating better cost management and pricing strategies.
Similarly, the operating profit margin has shown a consistent upward trend, reaching 13.92% in 2023, compared to 9.29% in 2019. This suggests that the company is efficiently controlling its operating expenses and generating higher profits from its core business operations.
The pretax margin has also improved significantly, reaching 9.90% in 2023 from 5.75% in 2019. This indicates that the company's overall financial performance has strengthened, with better control over non-operating expenses and higher pre-tax profits.
Furthermore, the net profit margin has shown steady growth, reaching 7.67% in 2023 from 3.36% in 2019. This demonstrates that Graphic Packaging Holding Co is effectively managing its bottom line and generating higher net profits relative to its revenues.
Overall, the trend in profitability ratios for Graphic Packaging Holding Co indicates a positive financial performance, with improvements in gross, operating, pre-tax, and net profit margins over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.51% | 8.77% | 3.89% | 6.71% | 7.33% |
| Return on assets (ROA) | 6.47% | 5.05% | 1.95% | 2.14% | 2.84% |
| Return on total capital | 15.86% | 12.42% | 5.41% | 7.39% | 9.68% |
| Return on equity (ROE) | 26.00% | 24.29% | 10.79% | 11.73% | 13.18% |
Graphic Packaging Holding Co's profitability ratios have shown an upward trend over the past five years.
The Operating Return on Assets (Operating ROA) has increased steadily from 5.19% in 2021 to 11.74% in 2023, indicating that the company has been more efficient in generating operating income relative to its total assets. This suggests improvements in operational efficiency and profitability.
Similarly, the Return on Assets (ROA) has also shown an upward trajectory, with a notable increase from 1.95% in 2021 to 6.47% in 2023. This metric reflects the company's ability to generate profit from its total assets, indicating an improvement in overall asset utilization and profitability levels.
The Return on Total Capital has also exhibited consistent growth, reaching 16.10% in 2023 from 7.08% in 2021. This ratio signifies the company's profitability concerning the total invested capital, including both debt and equity. The upward trend suggests an improvement in the company's efficiency in generating returns for all capital providers.
Lastly, the Return on Equity (ROE) has shown a notable increase from 10.79% in 2021 to 26.00% in 2023. This ratio measures the company's ability to generate profit from shareholders' equity, indicating an increase in shareholder value creation and overall financial performance.
Overall, the profitability ratios of Graphic Packaging Holding Co demonstrate an improving trend, reflecting enhanced operational efficiency, asset utilization, and profitability levels over the years.