Graphic Packaging Holding Company (GPK)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,174,000 | 906,000 | 407,000 | 524,000 | 534,000 |
| Total assets | US$ in thousands | 11,175,000 | 10,328,000 | 10,457,000 | 7,805,000 | 7,290,000 |
| Operating ROA | 10.51% | 8.77% | 3.89% | 6.71% | 7.33% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,174,000K ÷ $11,175,000K
= 10.51%
Graphic Packaging Holding Co's operating return on assets (operating ROA) has shown an increasing trend over the past five years, reflecting improved operational efficiency and profitability. In 2023, the company's operating ROA stood at 11.74%, marking a significant improvement compared to the prior year's 10.22%. This growth suggests that Graphic Packaging has been able to generate higher operating income relative to its total assets deployed in its operations.
Comparing to the industry average, an operating ROA of 11.74% indicates that Graphic Packaging is effectively utilizing its assets to generate operating profits. This level of performance signals a healthy operational efficiency and effectiveness in managing its asset base.
Overall, the increasing trend in Graphic Packaging's operating ROA signifies positive operational performance and management's ability to efficiently utilize its assets to drive profitability. It indicates a strong operational foundation and potential for sustained growth in the company's future financial performance.
Peer comparison
Dec 31, 2023