Graphic Packaging Holding Company (GPK)

Financial leverage 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
Total assets US$ in thousands 11,175,000 10,905,000 10,739,000 10,599,000 10,328,000 10,182,000 10,397,000 10,543,000 10,457,000 8,288,000 7,842,000 7,747,000 7,805,000 7,682,000 7,666,400 7,446,200 7,290,000 7,194,100 7,285,100 7,291,200
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
Financial leverage ratio 4.02 4.29 4.39 4.59 4.81 5.21 5.50 5.41 5.53 4.47 4.32 5.05 5.48 5.38 5.04 4.94 4.64 4.62 4.60 4.67

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 shown a decreasing trend over the past eight quarters, indicating an improvement in the company's leverage position. The ratio has decreased from 5.50 in Q2 2022 to 4.02 in Q4 2023. This decrease suggests that the company has been successful in reducing its reliance on debt to finance its operations. A lower financial leverage ratio typically signifies a lower level of financial risk and a stronger financial position. However, it is important to continue monitoring this trend to ensure the company maintains a sustainable and healthy balance between debt and equity in its capital structure.


Peer comparison

Dec 31, 2023

Company name
Symbol
Financial leverage ratio
Graphic Packaging Holding Company
GPK
4.02
Packaging Corp of America
PKG
2.17
Smurfit WestRock plc
SW
1.93
Sonoco Products Company
SON
2.97