Graphic Packaging Holding Company (GPK)

Based on the solvency ratios provided for Graphic Packaging Holding Company, the debt-to-assets ratio has shown some fluctuations over the years, ranging from 0.40 in 2020 to 0.53 in 2021, then stabilizing around 0.50 in 2022 and 0.46 in 2024. This indicates that the company's proportion of debt relative to its total assets has been relatively moderate, with a slight decrease in recent years.

In terms of the debt-to-capital ratio, the company has maintained a consistent level of indebtedness, with figures ranging from 0.69 in 2020 to 0.74 in 2021, then decreasing to around 0.62-0.63 in the subsequent years. This suggests a stable capital structure where debt plays a significant role in financing operations.

The debt-to-equity ratio has displayed more variability, starting at 2.21 in 2020 and peaking at 2.92 in 2021 before declining gradually to 1.71 in 2024. This indicates that the company's reliance on debt relative to shareholders' equity has fluctuated, but the trend suggests a decreasing dependency on debt financing in recent years.

Lastly, the financial leverage ratio has shown a declining trend from 5.48 in 2020 to 3.70 in 2024, indicating a reduction in financial risk and leverage over time. This implies that the company has become less dependent on borrowed funds to finance its operations and has improved its financial stability.

Overall, the analysis of these solvency ratios indicates that Graphic Packaging Holding Company has managed its debt levels reasonably well, with a moderate to decreasing reliance on debt financing and a trend towards greater financial stability over the years.

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Coverage ratios

To analyze Graphic Packaging Holding Company's interest coverage, we can see a improving trend over the years. The interest coverage ratio has increased from 2.62 in December 31, 2020, to 27.98 in December 31, 2024. This indicates that the company's ability to cover its interest expenses with operating income has significantly strengthened over the period. The continuous improvement in the interest coverage ratio suggests that Graphic Packaging Holding Company is becoming more financially stable and has better capacity to meet its interest obligations. This positive trend reflects positively on the company's overall financial health and risk management.