Graphic Packaging Holding Company (GPK)

Solvency ratios

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
Debt-to-assets ratio 0.46 0.48 0.43 0.41 0.44 0.47 0.52 0.50 0.51 0.53 0.54 0.53 0.50 0.48 0.49 0.40 0.42 0.40 0.46 0.39
Debt-to-capital ratio 0.63 0.64 0.63 0.62 0.66 0.67 0.70 0.71 0.73 0.74 0.74 0.74 0.69 0.67 0.71 0.69 0.69 0.67 0.70 0.64
Debt-to-equity ratio 1.71 1.79 1.73 1.66 1.90 2.06 2.37 2.42 2.66 2.91 2.90 2.92 2.23 2.06 2.47 2.21 2.24 1.99 2.28 1.79
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

The solvency ratios of Graphic Packaging Holding Company indicate its ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. The ratio has been fluctuating over the years, ranging from 0.39 to 0.54. An increase in this ratio indicates higher reliance on debt to finance assets, potentially increasing financial risk.

2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital structure financed by debt. Graphic Packaging Holding Company's debt-to-capital ratio has varied between 0.62 and 0.74. A higher ratio suggests a greater proportion of debt in the company's capital structure, which may increase financial leverage.

3. Debt-to-equity ratio: This ratio indicates the extent to which the company is using debt to finance its operations compared to equity. The ratio has ranged from 1.66 to 2.92, showing fluctuations in the financial leverage of the company. A higher ratio suggests higher financial risk due to increased dependence on debt financing.

4. Financial leverage ratio: This ratio measures the company's financial leverage, indicating the level of debt in relation to equity. The ratio has varied from 3.70 to 5.53 over the years. A higher ratio signifies a higher degree of financial risk and potential financial distress.

Overall, the solvency ratios of Graphic Packaging Holding Company show fluctuations in the company's reliance on debt financing and financial leverage. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to meet its long-term financial obligations and manage financial risk effectively.

Coverage ratios

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
Interest coverage 4.73 4.75 4.67 4.90 4.92 5.16 4.92 4.63 4.08 3.60 3.66 3.26 3.60 3.36 3.39 2.62 2.32 2.26 2.33 3.01

Based on the provided data, Graphic Packaging Holding Company's interest coverage ratio has shown fluctuations over the years. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.

From December 2019 to December 2020, the interest coverage ratio ranged between 2.26 and 3.39, showing some level of variability. However, from March 2021 to June 2024, the ratio consistently improved, reaching a peak of 5.16 in June 2023. This suggests an increasing ability of Graphic Packaging Holding Company to cover its interest expenses with its operating income during this period.

Although there were some fluctuations in the interest coverage ratio in the later periods, the company generally maintained a ratio above 4, indicating a sound financial position in terms of meeting its interest obligations.

Overall, the trend of increasing interest coverage ratio over the years signifies improved profitability and operational performance of Graphic Packaging Holding Company, contributing to its ability to comfortably cover its interest expenses.