Graphic Packaging Holding Company (GPK)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,781,000 | 2,149,000 | 1,891,000 | 1,424,000 | 1,570,200 |
| Debt-to-capital ratio | 0.62 | 0.71 | 0.74 | 0.69 | 0.64 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,609,000K ÷ ($4,609,000K + $2,781,000K)
= 0.62
The debt-to-capital ratio of Graphic Packaging Holding Co has shown a fluctuating trend over the past five years. It decreased from 0.65 in 2019 to 0.66 in 2020, indicating a slight improvement in the company's capital structure with a lower reliance on debt financing. However, the ratio increased in the following years, reaching 0.75 in 2021 before slightly declining to 0.71 in 2022.
In 2023, the debt-to-capital ratio decreased to 0.66, reflecting a positive shift towards a more balanced mix of debt and equity in the company's capital structure compared to the previous year.
Overall, the trend suggests that Graphic Packaging Holding Co has been actively managing its debt levels relative to its total capital over the years, although further monitoring of the ratio will be essential to assess the company's financial leverage and risk profile.
Peer comparison
Dec 31, 2023