International Paper (IP)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 5,243,000 | 5,287,000 | 6,018,000 | 5,531,000 | 6,207,000 |
| Revenue | US$ in thousands | 18,619,000 | 18,916,000 | 21,161,000 | 19,363,000 | 20,580,000 |
| Gross profit margin | 28.16% | 27.95% | 28.44% | 28.56% | 30.16% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $5,243,000K ÷ $18,619,000K
= 28.16%
The gross profit margin of International Paper has experienced a slight decrease over the years, decreasing from 30.16% as of December 31, 2020, to 28.16% as of December 31, 2024. This downward trend indicates that the company's cost of goods sold relative to its revenue has been increasing, impacting its overall profitability at the gross level. Despite the fluctuations, the gross profit margin has remained above 25% consistently, suggesting that International Paper has maintained a healthy level of profitability in its operations. It is important for the company to closely monitor and manage its cost structure to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2024