International Paper (IP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 557,000 | 288,000 | 1,504,000 | 811,000 | 482,000 |
| Total assets | US$ in thousands | 22,800,000 | 23,261,000 | 23,940,000 | 25,243,000 | 31,718,000 |
| ROA | 2.44% | 1.24% | 6.28% | 3.21% | 1.52% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $557,000K ÷ $22,800,000K
= 2.44%
Based on the provided data, International Paper's Return on Assets (ROA) has exhibited fluctuations over the years. The ROA was 1.52% as of December 31, 2020, indicating that for every dollar of assets, the company generated a return of 1.52 cents. Subsequently, the ROA increased to 3.21% by December 31, 2021, reflecting improved efficiency in asset utilization.
In the following year, by December 31, 2022, International Paper experienced a significant enhancement in ROA to 6.28%, suggesting a substantial improvement in profitability relative to its asset base. However, by December 31, 2023, the ROA declined to 1.24%, indicating a decrease in the company's ability to generate earnings from its assets efficiently.
As of December 31, 2024, the ROA rebounded to 2.44%, showing a recovery compared to the previous year. These fluctuations in ROA may be attributed to changes in operational efficiency, asset management strategies, profitability levels, or external economic factors affecting International Paper's financial performance.
Peer comparison
Dec 31, 2024