Graphic Packaging Holding Company (GPK)
Debt-to-equity 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-equity ratio | 1.66 | 2.42 | 2.92 | 2.21 | 1.79 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,609,000K ÷ $2,781,000K
= 1.66
The debt-to-equity ratio of Graphic Packaging Holding Co has fluctuated over the past five years. In 2023, the ratio decreased to 1.93 from 2.44 in 2022, indicating a reduction in the reliance on debt financing relative to equity. This trend suggests a more conservative capital structure in 2023 compared to the previous year.
However, when compared to 2021 and 2020, the debt-to-equity ratio remains relatively high. In 2021, the ratio was at 3.06, reflecting a significant proportion of debt in the company's capital structure. The ratio improved in 2023 but is still higher than the levels seen in 2019 and 2020.
Overall, the decreasing trend in the debt-to-equity ratio from 2022 to 2023 may indicate efforts by the company to manage and reduce its debt levels relative to equity. However, the company may still have a notable level of debt compared to equity, which could impact its financial risk and leverage position.
Peer comparison
Dec 31, 2023