Graphic Packaging Holding Company (GPK)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,172,000 | 913,000 | 401,000 | 338,000 | 424,000 |
| Long-term debt | US$ in thousands | 4,609,000 | 5,200,000 | 5,515,000 | 3,147,000 | 2,809,900 |
| Total stockholders’ equity | US$ in thousands | 2,781,000 | 2,149,000 | 1,891,000 | 1,424,000 | 1,570,200 |
| Return on total capital | 15.86% | 12.42% | 5.41% | 7.39% | 9.68% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,172,000K ÷ ($4,609,000K + $2,781,000K)
= 15.86%
Graphic Packaging Holding Co's return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital increased to 16.10%, marking a significant improvement compared to the previous year's 14.27%. This improvement suggests that the company was able to generate a higher return relative to its total capital investment.
Looking back, the return on total capital was relatively low in 2021 at 7.08%, indicating a potential inefficiency in capital utilization. However, there was a notable rebound in 2022 to 14.27%, showcasing an improvement in the company's capital efficiency.
In comparison to 2020 and 2019, where the return on total capital was 11.61% and 12.92% respectively, the most recent performance in 2023 appears stronger, indicating that Graphic Packaging Holding Co has been more effective in generating returns on the total capital invested in the business.
Overall, the trend in return on total capital for Graphic Packaging Holding Co reflects varying levels of capital efficiency over the years, with the most recent data in 2023 showing a positive upturn and suggesting a potential improvement in the company's overall performance.
Peer comparison
Dec 31, 2023