International Paper (IP)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,619,000 | 18,916,000 | 21,161,000 | 19,363,000 | 20,580,000 |
| Total assets | US$ in thousands | 22,800,000 | 23,261,000 | 23,940,000 | 25,243,000 | 31,718,000 |
| Total asset turnover | 0.82 | 0.81 | 0.88 | 0.77 | 0.65 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $18,619,000K ÷ $22,800,000K
= 0.82
The total asset turnover ratio for International Paper has shown a generally positive trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 0.65 in 2020, the ratio increased to 0.77 in 2021 and continued to rise to 0.88 in 2022, indicating that the company generated more revenue relative to its total assets each year.
However, there was a slight dip in the total asset turnover ratio in 2023 to 0.81, which may suggest that the company's ability to generate revenue from its total assets experienced a temporary setback. Nonetheless, International Paper was able to improve its efficiency in asset utilization as the ratio rebounded to 0.82 by the end of 2024.
Overall, the increasing trend in total asset turnover indicates that International Paper has been effectively using its assets to generate sales revenue, which can be a positive sign of operational efficiency and effectiveness in managing its asset base. This trend suggests that the company has been making efficient use of its resources to drive revenue growth and enhance shareholder value.
Peer comparison
Dec 31, 2024