International Paper (IP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 25.29% | 21.55% | 21.22% | 22.41% | 24.34% | 27.94% | 28.35% | 28.64% | 28.44% | 28.32% | 28.93% | 29.18% | 29.55% | 30.04% | 29.90% | 29.71% | 30.16% | 30.99% | 31.35% | 31.70% |
| Operating profit margin | 2.99% | 2.01% | 2.24% | 2.12% | 2.87% | 5.91% | 7.27% | 8.76% | 9.15% | 7.12% | 7.19% | 6.59% | 6.60% | 8.26% | 8.17% | 8.06% | 8.15% | 9.09% | 9.67% | 10.35% |
| Pretax margin | 0.79% | 0.24% | 1.06% | 1.33% | 2.02% | 5.30% | 5.49% | 6.54% | 7.14% | 5.84% | 8.57% | 8.10% | 8.22% | 8.53% | 5.79% | 5.17% | 3.16% | 4.45% | 5.15% | 5.30% |
| Net profit margin | 2.99% | 2.25% | 2.34% | 0.93% | 1.52% | 3.84% | 7.57% | 8.63% | 8.99% | 8.70% | 8.16% | 7.71% | 8.04% | 8.20% | 5.33% | 4.72% | 2.34% | 2.37% | 2.98% | 2.99% |
International Paper's profitability ratios have shown a declining trend over the past several quarters. The gross profit margin, indicating the percentage of revenue retained after deducting the cost of goods sold, has steadily decreased from 31.70% in March 2020 to 24.34% in December 2023, before slightly recovering to 25.29% in December 2024.
Similarly, the operating profit margin, which reflects the company's ability to generate profit from its core operations, has declined consistently from 10.35% in March 2020 to 2.99% in December 2024. This indicates challenges in controlling operating expenses and maintaining profitability.
The pretax margin, representing the proportion of income remaining after accounting for operating expenses and before taxes, fluctuated but generally decreased over the period, falling from 5.30% in March 2020 to 0.79% in December 2024. This suggests decreasing efficiency in managing costs and expenses relative to revenues.
The net profit margin, which reveals the percentage of revenue that translates into net income, has also decreased significantly from 2.99% in March 2020 to 2.99% in December 2024. This declining trend highlights challenges in generating bottom-line profits amidst cost pressures and other financial factors.
Overall, the decreasing profitability ratios for International Paper indicate potential challenges in maintaining and improving financial performance, requiring careful cost management and strategic decisions to enhance profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 2.44% | 1.81% | 1.89% | 0.75% | 1.24% | 3.11% | 6.47% | 7.61% | 7.95% | 7.38% | 6.92% | 6.64% | 6.94% | 6.10% | 3.62% | 3.09% | 1.52% | 1.55% | 1.95% | 1.99% |
| Return on total capital | 7.06% | 5.53% | 6.76% | 7.05% | 8.03% | 14.55% | 18.03% | 21.29% | 22.22% | 16.88% | 17.77% | 17.68% | 18.82% | 19.19% | 21.79% | 21.58% | 20.00% | 27.01% | 29.09% | 32.93% |
| Return on equity (ROE) | 6.82% | 4.87% | 5.06% | 2.08% | 3.45% | 8.40% | 18.23% | 21.55% | 22.40% | 19.35% | 19.34% | 18.79% | 19.29% | 18.69% | 13.63% | 12.53% | 6.14% | 6.96% | 8.98% | 9.63% |
Based on the provided data on International Paper's profitability ratios, we can observe the following trends:
1. Operating Return on Assets (Operating ROA) has fluctuated over the periods, ranging from a high of 8.09% in December 2022 to a low of 1.61% in September 2024. This ratio indicates the company's ability to generate profits from its operational assets, showing variability in performance over time.
2. Return on Assets (ROA) also demonstrates variability, with a peak of 7.95% in December 2022 and a trough of 0.75% in March 2024. This ratio reflects the company's overall profitability in relation to its total assets, suggesting fluctuations in efficiency and profitability levels.
3. Return on Total Capital shows a declining trend from a high of 32.93% in March 2020 to 5.53% in September 2024. This ratio evaluates the company's ability to generate returns for both equity and debt holders, indicating a decreasing trend in capital efficiency over the periods analyzed.
4. Return on Equity (ROE) displays fluctuations in performance, with the highest value of 22.40% in December 2022 and the lowest value of 2.08% in March 2024. ROE reflects the company's profitability in relation to its shareholders' equity, indicating variability in returns generated for equity investors.
Overall, the profitability ratios of International Paper show mixed performance over the analyzed periods, indicating fluctuations in operational efficiency, asset utilization, capital returns, and shareholder profitability. Further analysis and consideration of the company's financial and operational strategies may be required to understand the factors influencing these trends.