International Paper (IP)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,959,000 | 6,177,000 | 6,289,000 | 6,540,000 | 6,582,000 | 6,529,000 | 6,555,000 | 6,360,000 | 6,352,000 | 6,455,000 | 6,438,000 | 6,476,000 | 6,648,000 | 6,055,000 | 6,283,000 | 6,484,000 | 6,572,000 | 7,028,000 | 7,065,000 | 7,133,000 |
| Total assets | US$ in thousands | 23,261,000 | 23,951,000 | 23,683,000 | 23,771,000 | 23,940,000 | 24,865,000 | 25,282,000 | 25,158,000 | 25,243,000 | 29,471,000 | 31,448,000 | 31,477,000 | 31,718,000 | 31,840,000 | 32,519,000 | 33,215,000 | 33,471,000 | 33,848,000 | 34,347,000 | 34,178,000 |
| Operating ROA | 8.42% | 25.79% | 26.55% | 27.51% | 27.49% | 26.26% | 25.93% | 25.28% | 25.16% | 21.90% | 20.47% | 20.57% | 20.96% | 19.02% | 19.32% | 19.52% | 19.63% | 20.76% | 20.57% | 20.87% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,959,000K ÷ $23,261,000K
= 8.42%
The operating return on assets (ROA) for International Paper Co. has displayed some fluctuations over the past eight quarters. In Q1 2022, the operating ROA was 5.59%, followed by a slight increase to 5.82% in Q2 2022. The ratio further improved to 5.58% in Q3 2022 before experiencing a significant uptick to 7.33% in Q4 2022.
During the first two quarters of 2023, the operating ROA continued to rise substantially, reaching 6.35% in Q2 and peaking at 7.22% in Q1. However, there was a notable decrease in Q3 2023, with the operating ROA dropping to 5.60%, followed by a further decline to 3.29% in Q4 2023.
Overall, International Paper Co.'s operating ROA has shown mixed performance, with periods of growth and decline. The downward trend in the most recent quarters may indicate challenges or inefficiencies affecting the company's ability to generate operating income from its assets effectively. Further analysis and investigation into the factors influencing these fluctuations would be necessary to understand the underlying causes and implications for the company's financial performance.
Peer comparison
Dec 31, 2023