Graphic Packaging Holding Company (GPK)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,145,000 | 4,609,000 | 5,200,000 | 5,515,000 | 3,147,000 |
| Total stockholders’ equity | US$ in thousands | 3,012,000 | 2,781,000 | 2,149,000 | 1,891,000 | 1,424,000 |
| Debt-to-capital ratio | 0.63 | 0.62 | 0.71 | 0.74 | 0.69 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,145,000K ÷ ($5,145,000K + $3,012,000K)
= 0.63
The debt-to-capital ratio of Graphic Packaging Holding Company has shown fluctuations over the past five years, ranging from 0.62 to 0.74. This ratio indicates the proportion of the company's capital that is financed through debt.
In 2020, the debt-to-capital ratio was 0.69, which increased to 0.74 by the end of 2021, reflecting a higher reliance on debt financing relative to total capital. However, by 2022, the ratio decreased slightly to 0.71, and further to 0.62 by the end of 2023, indicating a reduction in debt relative to capital.
By the end of 2024, the debt-to-capital ratio stood at 0.63, remaining relatively stable compared to the previous year. Overall, the trend in the debt-to-capital ratio suggests that Graphic Packaging Holding Company has managed its debt levels effectively, with fluctuations possibly reflecting strategic decisions regarding capital structure and financing options.
Peer comparison
Dec 31, 2024