Graphic Packaging Holding Company (GPK)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,172,000 | 1,152,000 | 1,161,000 | 1,047,000 | 913,000 | 727,000 | 554,000 | 494,000 | 401,000 | 435,200 | 417,200 | 424,200 | 338,200 | 302,700 | 303,600 | 325,900 | 423,800 | 435,500 | 473,700 | 449,600 |
| Long-term debt | US$ in thousands | 4,609,000 | 4,821,000 | 5,046,000 | 5,463,000 | 5,200,000 | 5,195,000 | 5,506,000 | 5,645,000 | 5,515,000 | 4,132,000 | 3,742,000 | 3,787,000 | 3,147,000 | 3,196,900 | 3,028,800 | 3,434,500 | 2,809,900 | 2,935,000 | 2,997,500 | 3,129,800 |
| Total stockholders’ equity | US$ in thousands | 2,781,000 | 2,539,000 | 2,449,000 | 2,308,000 | 2,149,000 | 1,956,000 | 1,890,000 | 1,949,000 | 1,891,000 | 1,854,000 | 1,814,000 | 1,533,000 | 1,424,000 | 1,427,600 | 1,520,900 | 1,506,800 | 1,570,200 | 1,556,600 | 1,584,600 | 1,561,400 |
| Return on total capital | 15.86% | 15.65% | 15.49% | 13.47% | 12.42% | 10.17% | 7.49% | 6.51% | 5.41% | 7.27% | 7.51% | 7.97% | 7.40% | 6.55% | 6.67% | 6.60% | 9.68% | 9.70% | 10.34% | 9.58% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 been consistently improving over the past eight quarters, indicating the company's efficiency in generating returns from its total invested capital. The return on total capital increased from 7.96% in Q1 2022 to 16.10% in Q4 2023, reflecting a positive trend. This growth suggests that the company has been able to effectively utilize its capital resources to generate higher profits and create value for its shareholders. Overall, the increasing trend in return on total capital is a positive sign of Graphic Packaging Holding Co's operational effectiveness and financial performance.
Peer comparison
Dec 31, 2023