International Paper (IP)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 557,000 | 374,000 | 416,000 | 392,000 | 543,000 | 1,150,000 | 1,471,000 | 1,834,000 | 1,936,000 | 1,503,000 | 1,540,000 | 1,427,000 | 1,438,000 | 1,812,000 | 1,743,000 | 1,660,000 | 1,678,000 | 1,894,000 | 2,058,000 | 2,285,000 |
| Total assets | US$ in thousands | 22,800,000 | 23,161,000 | 23,063,000 | 23,028,000 | 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 |
| Operating ROA | 2.44% | 1.61% | 1.80% | 1.70% | 2.33% | 4.80% | 6.21% | 7.72% | 8.09% | 6.04% | 6.09% | 5.67% | 5.70% | 6.15% | 5.54% | 5.27% | 5.29% | 5.95% | 6.33% | 6.88% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $557,000K ÷ $22,800,000K
= 2.44%
The operating return on assets (ROA) for International Paper has shown some fluctuations over the past few years. It started at 6.88% in March 2020 and generally decreased until reaching its lowest point of 1.61% in September 2024. This downward trend indicates a declining ability of the company to generate profits from its assets through operations during this period.
However, there were some periods of slight recovery in the operating ROA, such as in June 2021, December 2021, and March 2022, when the ratios increased to around 6% levels. The most significant improvement was observed in December 2022 when the operating ROA surged to 8.09%, reflecting a strong performance in utilizing assets to generate operating income.
Subsequently, there was a notable decline in the operating ROA in the following quarters, dropping to 1.70% in March 2024. This suggests a potential deterioration in the company's operational efficiency and profitability during that period.
Overall, the fluctuating trend in International Paper's operating ROA indicates varying levels of operational performance and efficiency in generating profits from its assets over the analyzed period. Management may need to closely monitor and address the factors influencing these fluctuations to enhance the company's profitability and overall financial performance.
Peer comparison
Dec 31, 2024