Graphic Packaging Holding Company (GPK)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 658,000 | 723,000 | 522,000 | 204,000 | 167,000 |
| Total stockholders’ equity | US$ in thousands | 3,012,000 | 2,781,000 | 2,149,000 | 1,891,000 | 1,424,000 |
| ROE | 21.85% | 26.00% | 24.29% | 10.79% | 11.73% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $658,000K ÷ $3,012,000K
= 21.85%
To analyze Graphic Packaging Holding Company's return on equity (ROE) over the years provided, we observe the following trend:
- December 31, 2020: 11.73%
- December 31, 2021: 10.79%
- December 31, 2022: 24.29%
- December 31, 2023: 26.00%
- December 31, 2024: 21.85%
The return on equity (ROE) measures how efficiently the company is using its equity to generate profits. A higher ROE indicates that the company is generating more income from the shareholders' equity investment.
From the data, we can see that Graphic Packaging Holding Company's ROE fluctuated over the years. There was an increase in ROE from 2020 to 2023, reaching its peak at 26.00% in December 31, 2023, indicating an improvement in the company's profitability and efficiency in utilizing shareholders' equity.
However, there was a slight decrease in ROE to 21.85% by December 31, 2024. Despite the decrease, the ROE remained at a relatively high level, indicating that the company continues to generate favorable returns for its shareholders.
In conclusion, the company's ROE has shown variability over the years but has generally remained at satisfactory levels, reflecting a positive trend in profitability and efficiency in using shareholders' equity.
Peer comparison
Dec 31, 2024