International Paper (IP)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 288,000 | 254,000 | 1,040,000 | 1,316,000 | 1,504,000 | 1,929,000 | 1,842,000 | 1,763,000 | 1,752,000 | 1,798,000 | 1,138,000 | 972,000 | 482,000 | 494,000 | 634,000 | 660,000 | 1,225,000 | 1,376,000 | 1,594,000 | 1,707,000 |
| 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 |
| ROA | 1.24% | 1.06% | 4.39% | 5.54% | 6.28% | 7.76% | 7.29% | 7.01% | 6.94% | 6.10% | 3.62% | 3.09% | 1.52% | 1.55% | 1.95% | 1.99% | 3.66% | 4.07% | 4.64% | 4.99% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $288,000K ÷ $23,261,000K
= 1.24%
International Paper Co.'s return on assets (ROA) has shown a declining trend over the past four quarters. In Q4 2023, the ROA was 1.24%, down from 1.06% in Q3 2023, indicating a decrease in the company's ability to generate profits from its assets. The ROA of 4.39% in Q2 2023 was the highest among the quarters presented, but this was followed by a significant drop to 5.54% in Q1 2023. Comparing the latest ROA in Q4 2023 to the same quarter in the previous year, there has been a noticeable decline from 6.28% to 1.24%.
The decreasing trend in ROA could suggest that International Paper Co. is facing challenges in efficiently utilizing its assets to generate earnings. Investors and stakeholders may want to further investigate the reasons behind this decline and assess the company's asset management strategies to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023