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

Company name
Symbol
Debt-to-capital ratio
Graphic Packaging Holding Company
GPK
0.62
Packaging Corp of America
PKG
0.38
Smurfit WestRock plc
SW
0.00
Sonoco Products Company
SON
0.56