Graphic Packaging Holding Company (GPK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 12.70% | 12.86% | 12.27% | 12.64% | 12.17% | 12.08% | 11.93% | 10.52% | 8.88% | 7.38% | 6.01% | 5.38% | 8.47% | 10.65% | 13.42% | 16.77% | 17.28% | 17.77% | 18.35% | 17.74% |
| Operating profit margin | 12.30% | 12.49% | 12.13% | 12.45% | 12.04% | 11.98% | 10.83% | 9.60% | 7.97% | 6.56% | 6.35% | 5.69% | 6.66% | 6.72% | 7.15% | 7.99% | 8.20% | 8.41% | 8.96% | 8.67% |
| 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% |
| Net profit margin | 7.53% | 7.67% | 7.36% | 7.67% | 7.14% | 7.30% | 6.46% | 5.53% | 4.48% | 3.40% | 3.32% | 2.85% | 3.36% | 3.27% | 3.54% | 2.55% | 2.12% | 1.97% | 2.17% | 3.36% |
Graphic Packaging Holding Company's profitability ratios have shown varying trends over the period under consideration.
1. Gross Profit Margin: The gross profit margin has fluctuated during the period, starting at 17.74% in December 2019 and decreasing to 5.38% by December 2021. However, there has been an improvement since then, with the margin reaching 12.70% by December 2024. This indicates that the company has been able to better manage its cost of goods sold and improve its profitability from sales.
2. Operating Profit Margin: Similarly, the operating profit margin has shown fluctuations, starting at 8.67% in December 2019 and declining to 5.69% by December 2021. However, there has been a positive trend since then, with the margin increasing to 12.30% by December 2024. This suggests that the company has been able to effectively control its operating expenses and generate higher operating profits.
3. Pre-tax Margin: The pre-tax margin has also displayed variability over the period, starting at 4.59% in December 2019 and peaking at 9.90% by December 2023, before settling at 9.68% by December 2024. This indicates that the company has been able to increase its earnings before taxes relative to its total revenue.
4. Net Profit Margin: The net profit margin has shown an improvement over the period, starting at 3.36% in December 2019 and rising to 7.53% by December 2024. This demonstrates that the company has been able to enhance its bottom line by effectively managing its costs and expenses relative to its total revenue.
Overall, the trends in Graphic Packaging Holding Company's profitability ratios indicate a mix of challenges and improvements in managing costs, generating profits, and enhancing overall profitability over the period.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.74% | 10.09% | 9.89% | 10.51% | 10.56% | 10.78% | 9.84% | 8.77% | 7.08% | 5.28% | 4.67% | 3.89% | 5.48% | 5.77% | 6.10% | 6.72% | 6.86% | 6.92% | 7.52% | 7.33% |
| Return on assets (ROA) | 5.96% | 6.20% | 6.00% | 6.47% | 6.26% | 6.57% | 5.87% | 5.05% | 3.98% | 2.74% | 2.44% | 1.95% | 2.77% | 2.81% | 3.02% | 2.14% | 1.77% | 1.62% | 1.83% | 2.84% |
| Return on total capital | 13.29% | 13.49% | 14.38% | 15.86% | 15.65% | 15.49% | 13.47% | 12.42% | 10.17% | 7.49% | 6.51% | 5.41% | 7.27% | 7.51% | 7.97% | 7.40% | 6.55% | 6.67% | 6.60% | 9.68% |
| Return on equity (ROE) | 22.05% | 23.13% | 23.84% | 26.00% | 26.90% | 28.83% | 26.95% | 24.29% | 20.71% | 15.08% | 13.19% | 10.79% | 12.36% | 12.14% | 15.28% | 11.74% | 9.53% | 8.16% | 9.02% | 13.17% |
Graphic Packaging Holding Company has exhibited a fluctuating trend in its profitability ratios over the analyzed periods. The Operating return on assets (Operating ROA) decreased from 7.33% as of December 31, 2019, to 3.89% as of December 31, 2021, before showing an increasing trend to reach 9.89% as of September 30, 2024. This indicates a recent improvement in operational efficiency and asset utilization.
In terms of Return on assets (ROA), the ratio ranged from 1.62% as of June 30, 2020, to 6.57% as of June 30, 2023. It experienced a significant increase over time, reflecting the company's ability to generate profits from its total assets.
The Return on total capital also showed variability, starting from 6.55% as of September 30, 2020, to a peak of 15.86% as of December 31, 2023, signifying an enhanced ability to generate returns on the total invested capital, comprising both equity and debt.
Moreover, the Return on equity (ROE) depicted fluctuations over the periods, reaching a high of 28.83% as of June 30, 2023, after starting at 8.16% as of June 30, 2020. This indicates the company's effectiveness in generating returns for its shareholders from the equity investment.
Overall, the profitability ratios of Graphic Packaging Holding Company have shown varying trends, reflecting the company's operational efficiency, asset utilization, and ability to generate returns for both equity and total invested capital. The recent upward trends in these ratios suggest an improvement in the company's profitability performance.