International Paper (IP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 8,173,000 | 8,355,000 | 8,497,000 | 9,082,000 | 7,854,000 |
| ROE | 6.82% | 3.45% | 17.70% | 8.93% | 6.14% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $557,000K ÷ $8,173,000K
= 6.82%
International Paper's return on equity (ROE) has shown fluctuating trends over the past five years. The ROE increased from 6.14% as of December 31, 2020, to 8.93% by the end of 2021, indicating a positive growth trajectory. Subsequently, there was a significant jump in ROE to 17.70% by December 31, 2022, reflecting a notable improvement in the company's profitability and efficiency in generating returns for shareholders.
However, the ROE dropped to 3.45% as of December 31, 2023, signaling a decrease in profitability and possibly operational challenges faced by the company during that period. The following year saw a slight recovery in ROE to 6.82% by the end of 2024, although it remained below the peak achieved in 2022.
Overall, the trend in International Paper's ROE highlights both positive and challenging periods in terms of generating returns on shareholders' equity. It is essential for stakeholders to analyze the underlying factors contributing to these fluctuations to assess the company's financial performance and prospects for future growth.
Peer comparison
Dec 31, 2024