Graphic Packaging Holding Company (GPK)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,175,000 | 10,328,000 | 10,457,000 | 7,805,000 | 7,290,000 |
| Total stockholders’ equity | US$ in thousands | 2,781,000 | 2,149,000 | 1,891,000 | 1,424,000 | 1,570,200 |
| Financial leverage ratio | 4.02 | 4.81 | 5.53 | 5.48 | 4.64 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,175,000K ÷ $2,781,000K
= 4.02
The financial leverage ratio of Graphic Packaging Holding Co has been fluctuating over the past five years. The ratio decreased from 5.53 in 2021 to 4.02 in 2023, indicating a reduction in financial leverage. This decrease suggests that the company's reliance on debt to finance its operations has decreased. However, it is important to note that the ratio was relatively high in 2020 and 2019 at 5.48 and 4.64, respectively.
Overall, the trend in the financial leverage ratio indicates some variability in the company's capital structure and financing decisions over the years. It is essential for investors and stakeholders to monitor these changes to assess the company's risk profile and financial health accurately.
Peer comparison
Dec 31, 2023