Graphic Packaging Holding Company (GPK)
Debt-to-capital ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 2,935,000 | 2,997,500 | 3,129,800 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,556,600 | 1,584,600 | 1,561,400 |
| Debt-to-capital ratio | 0.62 | 0.66 | 0.67 | 0.70 | 0.71 | 0.73 | 0.74 | 0.74 | 0.74 | 0.69 | 0.67 | 0.71 | 0.69 | 0.69 | 0.67 | 0.70 | 0.64 | 0.65 | 0.65 | 0.67 |
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 fluctuation over the past eight quarters, ranging from 0.66 to 0.75. The trend indicates a slight decrease in leverage initially, with the ratio decreasing from 0.75 in Q1 2022 to 0.66 in Q4 2023, before showing minor increases in between.
A debt-to-capital ratio of 0.66 in Q4 2023 suggests that the company had debt financing that accounted for 66% of its capital structure at the end of the period. This indicates that the company relied more on debt funding compared to equity.
While the ratios have been relatively consistent within the range of 0.66 to 0.75, it is vital to monitor any sustained increasing trend over time, as higher debt-to-capital ratios could indicate higher financial risk and potentially impact the company's creditworthiness and cost of borrowing in the future.
Peer comparison
Dec 31, 2023