International Paper (IP)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 288,000 | 1,504,000 | 1,752,000 | 482,000 | 1,225,000 |
| Total assets | US$ in thousands | 23,261,000 | 23,940,000 | 25,243,000 | 31,718,000 | 33,471,000 |
| ROA | 1.24% | 6.28% | 6.94% | 1.52% | 3.66% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $288,000K ÷ $23,261,000K
= 1.24%
International Paper Co.'s return on assets (ROA) has shown variability over the past five years. In 2023, the ROA decreased to 1.24% from 6.28% in 2022, reflecting a notable decline in asset efficiency. This decline may indicate that the company's ability to generate profits from its assets decreased in 2023.
Comparing the ROA to the levels in previous years, it is evident that 2021 had the highest ROA at 6.94%, followed by 2019 at 3.66%. The ROA in 2023 is substantially lower than these peak levels, suggesting a potential decrease in asset utilization efficiency compared to those years.
Overall, International Paper Co.'s ROA has shown fluctuations, reflecting varying levels of asset efficiency and profitability over the five-year period. It is important for the company to analyze the factors driving these changes and take appropriate measures to improve asset utilization and overall profitability in the future.
Peer comparison
Dec 31, 2023