International Paper (IP)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 4,709,000 | 4,016,000 | 3,940,000 | 4,149,000 | 4,605,000 | 5,433,000 | 5,737,000 | 5,998,000 | 6,018,000 | 5,980,000 | 6,198,000 | 6,318,000 | 6,436,000 | 6,589,000 | 6,381,000 | 6,117,000 | 6,207,000 | 6,459,000 | 6,673,000 | 7,000,000 |
| Revenue (ttm) | US$ in thousands | 18,619,000 | 18,640,000 | 18,567,000 | 18,515,000 | 18,916,000 | 19,448,000 | 20,237,000 | 20,944,000 | 21,161,000 | 21,114,000 | 21,426,000 | 21,653,000 | 21,779,000 | 21,932,000 | 21,341,000 | 20,591,000 | 20,580,000 | 20,839,000 | 21,284,000 | 22,085,000 |
| Gross profit margin | 25.29% | 21.55% | 21.22% | 22.41% | 24.34% | 27.94% | 28.35% | 28.64% | 28.44% | 28.32% | 28.93% | 29.18% | 29.55% | 30.04% | 29.90% | 29.71% | 30.16% | 30.99% | 31.35% | 31.70% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,709,000K ÷ $18,619,000K
= 25.29%
International Paper's gross profit margin has experienced a downward trend over the reported periods, starting at 31.70% as of March 31, 2020, and declining to 21.22% by June 30, 2024. This indicates a decreasing profitability in terms of its core business operations.
The company's gross profit margin fluctuated slightly between 2020 to 2022 but showed a more significant decline towards the end of 2022 and throughout 2023. The margin decreased sharply from 29.18% as of March 31, 2022, to 27.94% by September 30, 2023.
A notable recovery occurred in the fourth quarter of 2024, with the gross profit margin increasing to 25.29% by December 31, 2024. This uptick may suggest potential improvements in the company's profitability, but the margin remains below the levels seen in earlier periods.
Overall, the declining trend in International Paper's gross profit margin from 2020 to 2024 indicates potential challenges in managing production costs or pricing strategies affecting the company's ability to generate profits from its core business activities.
Peer comparison
Dec 31, 2024