International Paper (IP)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 557,000 | 1,188,000 | 1,936,000 | 1,666,000 | 1,719,000 |
| Revenue | US$ in thousands | 18,619,000 | 18,916,000 | 21,161,000 | 19,363,000 | 20,580,000 |
| Operating profit margin | 2.99% | 6.28% | 9.15% | 8.60% | 8.35% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $557,000K ÷ $18,619,000K
= 2.99%
The operating profit margin of International Paper has experienced fluctuations over the period from December 31, 2020, to December 31, 2024.
In 2020, the operating profit margin stood at 8.35%, showing a moderate level of profitability in relation to sales revenue. Over the next two years, the margin gradually increased to 8.60% by December 31, 2021, and further to 9.15% by December 31, 2022, indicating improved efficiency in managing operating expenses relative to revenue.
However, in the subsequent years, there was a notable decline in the operating profit margin. By December 31, 2023, the margin dropped to 6.28%, signaling a decrease in profitability compared to the previous years. This decline intensified by December 31, 2024, with the operating profit margin falling significantly to 2.99%, reflecting a substantial decrease in the company's ability to generate profits from its core operations.
Overall, the fluctuation in International Paper's operating profit margin highlights the importance of closely monitoring and managing operational efficiency to sustain profitability and drive financial performance over time.
Peer comparison
Dec 31, 2024