International Paper (IP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.55% | 60.79% | 59.76% | 60.63% | 61.18% |
| Operating profit margin | 10.48% | 57.26% | 55.03% | 56.36% | 56.96% |
| Pretax margin | 1.86% | 3.01% | 4.97% | 1.61% | 3.84% |
| Net profit margin | 1.54% | 3.57% | 4.49% | 1.18% | 2.77% |
International Paper Co. has shown fluctuations in its profitability ratios over the past five years. The gross profit margin has been gradually decreasing from 31.77% in 2019 to 27.95% in 2023. This trend indicates a decline in the company's ability to generate profit from its core operations.
The operating profit margin has also seen a downward trend, with a significant drop from 10.84% in 2019 to 4.05% in 2023. This suggests that International Paper Co. is facing challenges in controlling its operating expenses relative to its revenue.
The pretax margin has shown inconsistency, with fluctuations between 1.91% in 2023 and 8.29% in 2022. This indicates potential volatility in the company's profitability before accounting for taxes.
The net profit margin has shown significant variability, ranging from 1.52% in 2023 to 9.05% in 2021. This demonstrates fluctuations in the company's ability to convert revenue into profit after accounting for all expenses and taxes.
Overall, the declining trends in the gross profit margin, operating profit margin, and net profit margin suggest that International Paper Co. may be experiencing challenges in maintaining its profitability levels. The fluctuating pretax margin further indicates potential volatility in the company's earnings before taxes.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.42% | 100.65% | 85.14% | 72.76% | 75.36% |
| Return on assets (ROA) | 1.24% | 6.28% | 6.94% | 1.52% | 3.66% |
| Return on total capital | 5.56% | 12.55% | 16.38% | 7.90% | 13.88% |
| Return on equity (ROE) | 3.45% | 17.70% | 19.29% | 6.14% | 15.88% |
International Paper Co.'s profitability ratios show fluctuating performance over the past five years.
The Operating Return on Assets (Operating ROA) has decreased from 7.33% in 2022 to 3.29% in 2023, indicating a decline in the company's ability to generate operating income from its assets.
Return on Assets (ROA) has shown significant variance, ranging from 1.24% in 2023 to 6.94% in 2021. This indicates that the company's ability to generate profits from its total assets has been inconsistent.
Return on Total Capital has fluctuated as well, with a decrease from 10.80% in 2022 to 4.64% in 2023. This suggests a decline in the company's overall efficiency in generating returns for both equity and debt holders.
Return on Equity (ROE) has also shown variability, ranging from 3.45% in 2023 to 19.29% in 2021. This indicates that equity investors have experienced fluctuating returns on their investment over the years.
Overall, International Paper Co.'s profitability ratios depict a mixed performance, with some years showing strong returns while others indicate challenges in maximizing profitability from its assets and capital.