Graphic Packaging Holding Company (GPK)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,144,000 | 11,175,000 | 10,328,000 | 10,457,000 | 7,805,000 |
| Total stockholders’ equity | US$ in thousands | 3,012,000 | 2,781,000 | 2,149,000 | 1,891,000 | 1,424,000 |
| Financial leverage ratio | 3.70 | 4.02 | 4.81 | 5.53 | 5.48 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,144,000K ÷ $3,012,000K
= 3.70
The financial leverage ratio of Graphic Packaging Holding Company has shown a declining trend over the years, indicating an improvement in the company's financial structure and risk profile. The ratio decreased from 5.48 at December 31, 2020, to 3.70 at December 31, 2024. This suggests that the company has been reducing its reliance on debt to finance its operations, which can lead to lower financial risk and increased financial stability. A lower financial leverage ratio is generally viewed positively by investors and creditors as it signifies a stronger equity position and less debt burden for the company.
Peer comparison
Dec 31, 2024