Graphic Packaging Holding Company (GPK)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,145,000 | 4,609,000 | 5,200,000 | 5,515,000 | 3,147,000 |
| Total stockholders’ equity | US$ in thousands | 3,012,000 | 2,781,000 | 2,149,000 | 1,891,000 | 1,424,000 |
| Debt-to-equity ratio | 1.71 | 1.66 | 2.42 | 2.92 | 2.21 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,145,000K ÷ $3,012,000K
= 1.71
The debt-to-equity ratio for Graphic Packaging Holding Company has shown fluctuations over the past five years.
As of December 31, 2020, the debt-to-equity ratio was 2.21, indicating that the company had a higher level of debt relative to its equity. This may suggest higher financial leverage and potential financial risk.
By December 31, 2021, the ratio increased to 2.92, signaling a further increase in debt relative to equity. This could imply that the company took on additional debt or experienced a decrease in equity during that period.
In the following year, by December 31, 2022, the debt-to-equity ratio decreased to 2.42, indicating a slight improvement in the company's financial structure compared to the previous year.
Further improvement was seen by December 31, 2023, with the ratio dropping to 1.66. This suggests a reduced reliance on debt financing and a stronger equity position relative to debt.
As of December 31, 2024, the debt-to-equity ratio moderated to 1.71, continuing the trend of decreasing leverage and potentially signaling a more balanced capital structure.
Overall, the trend in Graphic Packaging Holding Company's debt-to-equity ratio reflects fluctuating levels of debt relative to equity over the years, with recent years showing a trend towards a more balanced financial structure with lower reliance on debt financing.
Peer comparison
Dec 31, 2024