International Paper (IP)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 3,467,000 | 25,582,000 | 23,339,000 | 24,826,000 | 27,090,000 |
| Revenue | US$ in thousands | 18,685,000 | 42,080,000 | 39,054,000 | 40,947,000 | 44,282,000 |
| Gross profit margin | 18.55% | 60.79% | 59.76% | 60.63% | 61.18% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $3,467,000K ÷ $18,685,000K
= 18.55%
The gross profit margin of International Paper Co. has shown a declining trend over the past five years, decreasing from 31.77% in 2019 to 27.95% in 2023. This suggests that the company's profitability from core operations, after accounting for direct costs of goods sold, has been decreasing over the period. The decline in the gross profit margin may indicate challenges such as increased cost of goods sold, pricing pressures, or inefficiencies in production processes. It is important for the company to closely monitor and address the factors affecting its gross profit margin to maintain and improve its overall financial performance.
Peer comparison
Dec 31, 2023