Packaging Corp of America (PKG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,075,100 | 1,420,700 | 1,241,400 | 723,900 | 1,053,700 |
| Total assets | US$ in thousands | 8,681,100 | 8,003,800 | 7,836,800 | 7,433,200 | 7,235,800 |
| Operating ROA | 12.38% | 17.75% | 15.84% | 9.74% | 14.56% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,075,100K ÷ $8,681,100K
= 12.38%
The operating return on assets (Operating ROA) for Packaging Corp Of America has shown fluctuations over the past five years. In 2023, the operating ROA decreased to 12.88% from 18.52% in 2022, reflecting a decline in the company's ability to generate operating profits from its assets. Despite the decrease, the current operating ROA remains above the levels seen in 2020 and 2019, suggesting continued efficiency in utilizing assets to generate operating income. It will be important to further investigate the factors contributing to the decline in operating ROA in 2023 to determine any potential areas of improvement for the company.
Peer comparison
Dec 31, 2023