International Paper (IP)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 22,800,000 | 23,261,000 | 23,940,000 | 25,243,000 | 31,718,000 |
| Operating ROA | 2.44% | 5.11% | 8.09% | 6.60% | 5.42% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $557,000K ÷ $22,800,000K
= 2.44%
Based on the data provided, International Paper's operating return on assets (ROA) has shown some fluctuations over the years.
- In December 2020, the operating ROA was at 5.42%, indicating that the company generated 5.42 cents of operating profit for every dollar of assets.
- By December 2021, the operating ROA had increased to 6.60%, suggesting improved asset utilization or profitability.
- In December 2022, the operating ROA further improved to 8.09%, indicating a more efficient use of assets to generate operating income.
- However, by December 2023, the operating ROA decreased to 5.11%, potentially signaling challenges in maintaining previous levels of profitability.
- The trend continued in December 2024, with the operating ROA dropping significantly to 2.44%, raising concerns about the company's ability to generate operating profits from its assets.
Overall, while International Paper's operating ROA has shown both positive and negative trends over the years, investors and stakeholders should closely monitor future financial performance to assess the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2024