Graphic Packaging Holding Company (GPK)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,609,000 | 5,200,000 | 5,515,000 | 3,147,000 | 2,809,900 |
| Total assets | US$ in thousands | 11,175,000 | 10,328,000 | 10,457,000 | 7,805,000 | 7,290,000 |
| Debt-to-assets ratio | 0.41 | 0.50 | 0.53 | 0.40 | 0.39 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,609,000K ÷ $11,175,000K
= 0.41
The debt-to-assets ratio for Graphic Packaging Holding Co has exhibited a declining trend over the past five years. In 2019, the ratio stood at 0.39, indicating that 39% of the company's assets were financed by debt. Subsequently, the ratio increased to 0.47 in 2020 before decreasing to 0.55 in 2021. However, there was a notable improvement in 2022 when the ratio decreased to 0.51. The most recent data for December 31, 2023, shows a further decline to 0.48.
A decreasing trend in the debt-to-assets ratio is generally considered favorable as it suggests that the company is relying less on debt to finance its assets. This can indicate improved financial stability and lower financial risk. However, it's essential to assess this ratio in conjunction with other financial metrics to gain a holistic understanding of the company's overall financial health and leverage position.
Peer comparison
Dec 31, 2023