Graphic Packaging Holding Company (GPK)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 854,000 | 893,000 | 880,000 | 933,000 | 918,000 | 936,000 | 834,000 | 716,000 | 549,000 | 400,000 | 359,000 | 278,000 | 314,200 | 293,200 | 299,200 | 209,200 | 172,100 | 169,100 | 185,900 | 282,800 |
| Revenue (ttm) | US$ in thousands | 8,819,000 | 9,073,000 | 9,249,000 | 9,428,000 | 9,565,000 | 9,667,000 | 9,633,000 | 9,440,000 | 9,042,000 | 8,373,000 | 7,752,000 | 7,156,000 | 6,820,100 | 6,736,100 | 6,610,100 | 6,560,100 | 6,427,800 | 6,311,400 | 6,253,200 | 6,160,100 |
| Pretax margin | 9.68% | 9.84% | 9.51% | 9.90% | 9.60% | 9.68% | 8.66% | 7.58% | 6.07% | 4.78% | 4.63% | 3.88% | 4.61% | 4.35% | 4.53% | 3.19% | 2.68% | 2.68% | 2.97% | 4.59% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $854,000K ÷ $8,819,000K
= 9.68%
The pretax margin of Graphic Packaging Holding Company has shown variation over the periods analyzed. The pretax margin was relatively stable in 2020, ranging from 2.68% to 4.59%. Starting from March 2021, the pretax margin began to increase, reaching a peak of 9.90% by December 2023. However, there was a slight decrease in the pretax margin in March 2024 to 9.51%, followed by a recovery to 9.68% by December 2024.
This upward trend in pretax margin from 2021 to 2023 indicates an improvement in the company's profitability before accounting for taxes. It suggests that Graphic Packaging Holding Company was able to effectively manage its operating expenses and generate higher revenues, resulting in a more efficient operation. The company's ability to sustain a pretax margin above 9% in the latter part of the period indicates a solid performance in terms of generating profits relative to total revenue.
Overall, the increasing pretax margin trend showcases the company's financial efficiency and effectiveness in managing its cost structure and operational performance during the analyzed periods.
Peer comparison
Dec 31, 2024