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Graphic Packaging Holding Co (STU:4W8) Financial Strength : 4 (As of Mar. 2024)


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What is Graphic Packaging Holding Co Financial Strength?

Graphic Packaging Holding Co has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Graphic Packaging Holding Co's Interest Coverage for the quarter that ended in Mar. 2024 was 4.98. Graphic Packaging Holding Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.63. As of today, Graphic Packaging Holding Co's Altman Z-Score is 1.94.


Competitive Comparison of Graphic Packaging Holding Co's Financial Strength

For the Packaging & Containers subindustry, Graphic Packaging Holding Co's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the Packaging & Containers Industry

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

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



Graphic Packaging Holding Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Graphic Packaging Holding Co's Interest Expense for the months ended in Mar. 2024 was €-54 Mil. Its Operating Income for the months ended in Mar. 2024 was €270 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €4,536 Mil.

Graphic Packaging Holding Co's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*270.48/-54.28
=4.98

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Graphic Packaging Holding Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(695.52 + 4535.6) / 8313.12
=0.63

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Graphic Packaging Holding Co has a Z-score of 1.94, indicating it is in Grey Zones. This implies that Graphic Packaging Holding Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.94 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Graphic Packaging Holding Co  (STU:4W8) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Graphic Packaging Holding Co has the Financial Strength Rank of 4.


Graphic Packaging Holding Co Financial Strength Related Terms

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Graphic Packaging Holding Co (STU:4W8) 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.

Graphic Packaging Holding Co (STU:4W8) Headlines

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