Graphic Packaging Holding Company (GPK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 723,000 | 522,000 | 204,000 | 167,000 | 207,000 |
| Total assets | US$ in thousands | 11,175,000 | 10,328,000 | 10,457,000 | 7,805,000 | 7,290,000 |
| ROA | 6.47% | 5.05% | 1.95% | 2.14% | 2.84% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $723,000K ÷ $11,175,000K
= 6.47%
The return on assets (ROA) for Graphic Packaging Holding Co has shown a positive trend over the past five years. The ROA increased from 2.84% in 2019 to 6.47% in 2023, indicating an improvement in the company's ability to generate profits from its assets.
The ROA was relatively stable between 2020 and 2022, ranging between 1.95% and 5.05%. This suggests that the company was able to maintain a consistent level of profitability relative to its total assets during those years.
The significant increase in ROA to 6.47% in 2023 is a positive sign for investors, as it indicates that Graphic Packaging Holding Co is becoming more efficient in utilizing its assets to generate earnings. This improved performance may be attributed to effective cost management, increased revenue generation, or other operational efficiencies within the company.
Overall, the increasing trend in ROA demonstrates Graphic Packaging Holding Co's enhanced profitability and efficiency in utilizing its assets to generate returns for its shareholders.
Peer comparison
Dec 31, 2023