Graphic Packaging Holding Company (GPK)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,144,000 | 11,231,000 | 11,349,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,012,000 | 3,009,000 | 2,857,000 | 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 |
| Financial leverage ratio | 3.70 | 3.73 | 3.97 | 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 |
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 fluctuations over the years. From December 31, 2019, to December 31, 2023, the ratio increased gradually from 4.64 to 5.53, indicating a higher level of financial leverage. This suggests that the company relied more on debt financing relative to its equity during this period.
However, starting from March 31, 2024, the financial leverage ratio of the company started to decrease, reaching 3.70 by December 31, 2024. This decline may signify a reduction in the company's reliance on debt to finance its operations.
The decreasing trend in the financial leverage ratio from March 2024 to December 2024 may indicate that Graphic Packaging Holding Company is moving towards a more balanced capital structure with a lower level of debt relative to equity. It is essential for investors and stakeholders to monitor these trends to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2024