International Paper (IP)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	1,959,000	24,095,000	21,493,000	23,079,000	25,224,000
Revenue	US$ in thousands	18,685,000	42,080,000	39,054,000	40,947,000	44,282,000
Operating profit margin		10.48%	57.26%	55.03%	56.36%	56.96%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,959,000K ÷ $18,685,000K
= 10.48%

The operating profit margin of International Paper Co. has shown a declining trend over the last five years, decreasing from 10.84% in 2019 to 4.05% in 2023. This indicates a decreasing efficiency in generating profits from its core operations. The lower operating profit margin could be attributed to various factors such as increasing costs, pricing pressures, or a decrease in revenue relative to expenses. It is important for the company to closely monitor and address the factors impacting its operating profit margin to sustain profitability and improve operational efficiency.

Peer comparison

Dec 31, 2023

Company name

Symbol

Operating profit margin

International Paper

10.48%