International Paper (IP)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,685,000 | 42,080,000 | 39,054,000 | 40,947,000 | 44,282,000 |
| Total assets | US$ in thousands | 23,261,000 | 23,940,000 | 25,243,000 | 31,718,000 | 33,471,000 |
| Total asset turnover | 0.80 | 1.76 | 1.55 | 1.29 | 1.32 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $18,685,000K ÷ $23,261,000K
= 0.80
The total asset turnover ratio measures the efficiency of International Paper Co. in generating sales revenue from its total assets. A higher ratio indicates better asset utilization.
Over the past five years, the total asset turnover ratio for International Paper Co. has ranged from 0.65 to 0.88. This indicates that the company generated $0.81 in sales for every $1 of total assets in 2023, slightly lower than the previous year. The ratio was highest in 2022 at 0.88, showing efficient asset utilization. In 2021 and 2019, the ratios were 0.77 and 0.67, respectively, suggesting a decline in asset turnover efficiency.
The trend in total asset turnover indicates some fluctuations, with a general improvement up to 2022 before a slight decline. It is essential for International Paper Co. to continue monitoring and enhancing its asset management strategies to improve efficiency and generate more sales from its total asset base.
Peer comparison
Dec 31, 2023