Graphic Packaging Holding Company (GPK)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,119,000 | 1,172,000 | 913,000 | 401,000 | 338,000 |
| Long-term debt | US$ in thousands | 5,145,000 | 4,609,000 | 5,200,000 | 5,515,000 | 3,147,000 |
| Total stockholders’ equity | US$ in thousands | 3,012,000 | 2,781,000 | 2,149,000 | 1,891,000 | 1,424,000 |
| Return on total capital | 13.72% | 15.86% | 12.42% | 5.41% | 7.39% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,119,000K ÷ ($5,145,000K + $3,012,000K)
= 13.72%
The return on total capital for Graphic Packaging Holding Company has shown fluctuations over the past five years. In December 2020, the return on total capital was 7.39%, which decreased to 5.41% by December 2021. However, there was a significant improvement in the return on total capital by December 2022, reaching 12.42%. This positive trend continued in December 2023 with a further increase to 15.86%. By December 2024, the return on total capital slightly decreased to 13.72%.
These fluctuations in return on total capital indicate variability in the company's ability to generate profits in relation to the total capital invested. It is crucial for investors and stakeholders to monitor these changes closely to assess the company's operational efficiency and profitability over time.
Peer comparison
Dec 31, 2024