Packaging Corp of America (PKG)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 805,100 | 765,200 | 1,029,800 | 841,100 | 461,000 |
| Total assets | US$ in thousands | 8,833,200 | 8,681,100 | 8,003,800 | 7,836,800 | 7,433,200 |
| ROA | 9.11% | 8.81% | 12.87% | 10.73% | 6.20% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $805,100K ÷ $8,833,200K
= 9.11%
Packaging Corp of America's return on assets (ROA) has shown a positive trend over the past five years, starting at 6.20% on December 31, 2020, and reaching its peak at 12.87% on December 31, 2022. The company's ROA then decreased slightly to 8.81% by December 31, 2023, and stabilized at 9.11% by December 31, 2024.
The increasing trend in ROA from 2020 to 2022 indicates that Packaging Corp of America efficiently utilized its assets to generate profits during this period. However, the slight decrease in ROA in 2023 suggests a potential dip in asset efficiency or profitability. Nevertheless, the company was able to maintain a relatively stable ROA in 2024.
Overall, the fluctuating but generally positive trend in ROA reflects the company's ability to generate earnings relative to its total assets, although sustainable efforts may be needed to ensure consistent asset utilization and profitability in the future.
Peer comparison
Dec 31, 2024