Graphic Packaging Holding Company (GPK)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,119,000 | 1,174,000 | 906,000 | 407,000 | 524,000 |
| Total assets | US$ in thousands | 11,144,000 | 11,175,000 | 10,328,000 | 10,457,000 | 7,805,000 |
| Operating ROA | 10.04% | 10.51% | 8.77% | 3.89% | 6.71% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,119,000K ÷ $11,144,000K
= 10.04%
Operating return on assets (ROA) is a key financial metric that evaluates a company's efficiency in generating operating profits relative to its total assets. Analyzing Graphic Packaging Holding Company's operating ROA over the past five years reveals trends and insights into the company's operational performance and asset utilization.
In December 2020, Graphic Packaging Holding Company reported an operating ROA of 6.71%, indicating that the company generated operating profits equivalent to approximately 6.71% of its total assets during that year. This initial figure serves as a baseline for assessing subsequent changes in operating ROA.
By December 2021, the company's operating ROA had decreased to 3.89%, suggesting a decline in operational efficiency and asset productivity. This decrease may be attributed to various factors such as increased operating costs, reduced revenues, or changes in the asset base.
However, the following years showed a positive turnaround in Graphic Packaging's performance. In December 2022, the operating ROA improved significantly to 8.77%, indicating enhanced profitability and better utilization of assets. This improvement may have been driven by cost-cutting measures, revenue growth, or strategic asset management initiatives.
The positive trend continued in December 2023 and December 2024, with operating ROA reaching 10.51% and 10.04%, respectively. These successive increases highlight Graphic Packaging Holding Company's consistent efforts to optimize its operations and maximize returns on its asset base.
Overall, the fluctuation in Graphic Packaging's operating ROA over the analyzed period underscores the company's ability to adapt to changing market conditions, implement effective operational strategies, and enhance its overall financial performance. The upward trajectory in operating ROA in the later years reflects positively on the company's management of assets and operations.
Peer comparison
Dec 31, 2024