Graphic Packaging Holding Company (GPK)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,145,000 | 5,372,000 | 4,930,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,012,000 | 3,009,000 | 2,857,000 | 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 |
| Debt-to-capital ratio | 0.63 | 0.64 | 0.63 | 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 |
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 some fluctuations over the past years. The ratio stood at 0.64 as of December 31, 2019, and increased to 0.70 by March 31, 2020, before decreasing slightly to 0.67 by June 30, 2020. Thereafter, it increased to 0.69 by September 30, 2020, and remained relatively stable around this level for the following quarters.
By December 31, 2021, the debt-to-capital ratio rose to 0.74, indicating a higher level of debt relative to capital. The ratio fluctuated around this level for the subsequent quarters, hovering between 0.71 and 0.74.
However, the ratio started to decline by December 31, 2023, reaching 0.62, and continued to decrease to 0.63 by March 31, 2024. The trend of decreasing debt-to-capital ratio suggests improving capital structure with reducing reliance on debt to finance operations.
As of September 30, 2024, the debt-to-capital ratio stood at 0.64. This downward trend observed in the latest periods may indicate a strategic shift towards a more balanced capital structure by managing debt levels more effectively.
Peer comparison
Dec 31, 2024