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Graphic Packaging Holding Co (Graphic Packaging Holding Co) ROE % : 29.47% (As of Dec. 2023)


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What is Graphic Packaging Holding Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Graphic Packaging Holding Co's annualized net income for the quarter that ended in Dec. 2023 was $784 Mil. Graphic Packaging Holding Co's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $2,660 Mil. Therefore, Graphic Packaging Holding Co's annualized ROE % for the quarter that ended in Dec. 2023 was 29.47%.

The historical rank and industry rank for Graphic Packaging Holding Co's ROE % or its related term are showing as below:

GPK' s ROE % Range Over the Past 10 Years
Min: 8.65   Med: 18.27   Max: 29.57
Current: 29.57

During the past 13 years, Graphic Packaging Holding Co's highest ROE % was 29.57%. The lowest was 8.65%. And the median was 18.27%.

GPK's ROE % is ranked better than
94.2% of 379 companies
in the Packaging & Containers industry
Industry Median: 6.13 vs GPK: 29.57

Graphic Packaging Holding Co ROE % Historical Data

The historical data trend for Graphic Packaging Holding Co's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Graphic Packaging Holding Co ROE % Chart

Graphic Packaging Holding Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.14 11.15 12.31 25.84 29.33

Graphic Packaging Holding Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.40 37.16 25.23 27.27 29.47

Competitive Comparison of Graphic Packaging Holding Co's ROE %

For the Packaging & Containers subindustry, Graphic Packaging Holding Co's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Graphic Packaging Holding Co's ROE % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Graphic Packaging Holding Co's ROE % distribution charts can be found below:

* The bar in red indicates where Graphic Packaging Holding Co's ROE % falls into.



Graphic Packaging Holding Co ROE % Calculation

Graphic Packaging Holding Co's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=723/( (2149+2781)/ 2 )
=723/2465
=29.33 %

Graphic Packaging Holding Co's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=784/( (2539+2781)/ 2 )
=784/2660
=29.47 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Graphic Packaging Holding Co  (NYSE:GPK) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=784/2660
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(784 / 8996)*(8996 / 11040)*(11040 / 2660)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.71 %*0.8149*4.1504
=ROA %*Equity Multiplier
=7.1 %*4.1504
=29.47 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=784/2660
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (784 / 920) * (920 / 1208) * (1208 / 8996) * (8996 / 11040) * (11040 / 2660)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8522 * 0.7616 * 13.43 % * 0.8149 * 4.1504
=29.47 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Graphic Packaging Holding Co ROE % Related Terms

Thank you for viewing the detailed overview of Graphic Packaging Holding Co's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Graphic Packaging Holding Co (Graphic Packaging Holding Co) Business Description

Traded in Other Exchanges
Address
1500 Riveredge Parkway, Suite 100, Atlanta, GA, USA, 30328
Graphic Packaging Holding Co is a holding company that manufactures and sells a variety of paper-based consumer packaging products through its subsidiaries. The company's two primary functions include the sale of paperboard packaging and the operation of paperboard mills. The paperboard packaging business includes packaging for beverages, including beer and soft drinks as well as food, including cereal, frozen foods, and pet foods. The firm also sells paperboard packaging for household products, including dishwasher and laundry detergent and personal care products. Graphic Packaging operates papermills that sell laminated and coated packaging products to third parties. The majority of revenue comes from the Americas.
Executives
Stephen R. Scherger officer: SVP, Consumer Packaging Div. 3901 SULGRAVE ROAD, RICHMOND VA 23221
Lynn A Wentworth director CINCINNATI BELL INC, P O BOX 2301, CINCINNATI OH 45201
Michael James Farrell officer: EVP, Mills Division 1500 RIVEREDGE PARKWAY, SUITE 100, ATLANTA GA 30328
Jean Francois Roche officer: SVP and President, EMEA 1500 RIVEREDGE PARKWAY, SUITE 100, AT GA 30328
Elizabeth Spence officer: EVP, Human Resources 1500 RIVEREDGE PARKWAY, N.W., SUITE 100, ATLANTA GA 30328
Aziz Aghili director 5706 KIRKRIDGE TRAIL, ROCHESTER HILLS MI 48306
Margie Kay Bidlingmaier officer: EVP, President, Americas Busi 1500 RIVEREDGE PARKWAY, SUITE 100, ATLANTA GA 30328
Mary K Rhinehart director 821 17TH STREET, DENVER CO 80202
Joseph P Yost officer: SVP, Supply Chain 814 LIVINGSTON COURT, MARIETTA GA 30067
Larry M Venturelli director 2000 M-63N, BENTON HARBOR MI 49022
Charles D Lischer officer: SVP & CAO 2500 WINDY RIDGE PARKWAY, SUITE 700, ATLANTA GA 30339
Stacey J. Panayiotou officer: EVP, Human Resources 9200 W. 108TH CIRCLE, WESTMINSTER CO 80021
Robert Hagemann director 3 GIRALDA FARMS, MADISON NJ 07940
Laurie Brlas director C/O ALBEMARLE CORPORATION, 4250 CONGRESS ST STE 900, CHARLOTTE NC 28209
Dean A Scarborough director 150 N. ORANGE GROVE BLVD, PASADENA CA 91103