International Paper (IP)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 577,000 | 477,000 | 581,000 | 582,000 | 671,000 | 1,292,000 | 1,515,000 | 1,786,000 | 1,888,000 | 1,602,000 | 1,607,000 | 1,571,000 | 1,709,000 | 1,846,000 | 1,820,000 | 1,674,000 | 1,571,000 | 1,916,000 | 2,053,000 | 2,258,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,173,000 | 8,629,000 | 8,595,000 | 8,257,000 | 8,355,000 | 8,882,000 | 8,404,000 | 8,389,000 | 8,497,000 | 9,488,000 | 9,043,000 | 8,887,000 | 9,082,000 | 9,622,000 | 8,352,000 | 7,758,000 | 7,854,000 | 7,093,000 | 7,057,000 | 6,857,000 |
| 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $577,000K ÷ ($—K + $8,173,000K)
= 7.06%
International Paper's return on total capital has exhibited a declining trend over the past few years. Starting at a robust 32.93% in March 2020, the return gradually decreased to 5.53% by September 2024, indicating potential challenges in efficiently utilizing its total capital to generate profits. Although there were minor fluctuations in the interim periods, the overall downward trend is evident. The most recent data point as of December 31, 2024, shows a slight improvement to 7.06%, which may suggest early signs of a potential reversal in the declining trend. It would be important for stakeholders to monitor this metric closely to assess International Paper's capital efficiency and profitability going forward.
Peer comparison
Dec 31, 2024