Graphic Packaging Holding Company (GPK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,781,000 | 2,149,000 | 1,891,000 | 1,424,000 | 1,570,200 |
| ROE | 26.00% | 24.29% | 10.79% | 11.73% | 13.18% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $723,000K ÷ $2,781,000K
= 26.00%
Graphic Packaging Holding Co's return on equity (ROE) has shown a positive trend over the past five years, demonstrating an improving performance in utilizing shareholders' equity to generate profit.
The ROE increased from 13.17% in 2019 to 26.00% in 2023, indicating a significant enhancement in the company's ability to generate profits from the shareholders' equity investment.
The steady growth in ROE from 2019 to 2023 reflects the company's efficient management of assets and effective utilization of equity financing to drive profitability.
Comparing the ROE figures of the most recent year, 2023, to the earlier years, 2020 and 2021, there is a notable improvement, showcasing a positive trajectory in the company's financial performance and overall shareholder value creation.
The consistent increase in ROE over the years suggests that Graphic Packaging Holding Co has been successful in enhancing its operational efficiency and profitability, which may be indicative of a sound financial management strategy and effective allocation of resources.
Overall, the upward trend in Graphic Packaging Holding Co's ROE reflects positively on the company's ability to generate returns for its shareholders through efficient utilization of equity capital.
Peer comparison
Dec 31, 2023