Graphic Packaging Holding Company (GPK)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,084,000 | 1,131,000 | 1,120,000 | 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 |
| Long-term debt | US$ in thousands | 5,145,000 | 5,372,000 | 4,930,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,012,000 | 3,009,000 | 2,857,000 | 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 |
| Return on total capital | 13.29% | 13.49% | 14.38% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,084,000K ÷ ($5,145,000K + $3,012,000K)
= 13.29%
Graphic Packaging Holding Company's return on total capital has shown fluctuations over the past few years. At the end of December 2019, the company had a return on total capital of 9.68%, which then decreased to 6.60% by March 2020. Despite some volatility, there was a slight uptick to 7.40% by the end of December 2020.
In the subsequent quarters, the return on total capital remained in the range of 6-8%. However, there was a significant improvement in the company's performance towards the end of 2022, with the return on total capital reaching double digits at 12.42% by December 31, 2022. This positive trend continued into 2023, with the return on total capital further increasing to 15.86% by the end of December 2023.
However, by March 2024, the return on total capital had declined to 14.38%, and then to 13.29% by the end of December 2024. It is important to note that while there were fluctuations in the return on total capital over the period analyzed, the company generally showed an improving trend from 2019 to 2023 before experiencing a slight decline in 2024. This indicates that Graphic Packaging Holding Company has been able to effectively generate returns from its capital investments, but may need to focus on sustaining this performance in the coming periods.
Peer comparison
Dec 31, 2024