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

Company name
Symbol
Operating ROA
International Paper
IP
8.42%
Mativ Holdings Inc.
MATV
-14.35%
Sylvamo Corp
SLVM
3.41%