Packaging Corp of America (PKG)

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 765,200 787,600 866,900 965,700 1,029,800 1,034,700 1,022,900 928,700 841,000 748,000 636,400 485,800 461,000 473,700 514,400 651,300 696,400 764,800 791,700 784,700
Total assets US$ in thousands 8,681,100 8,177,600 8,106,500 8,049,000 8,003,800 8,344,400 8,340,600 8,137,800 7,836,800 8,630,800 7,673,600 7,549,000 7,433,200 7,372,600 7,272,000 7,347,600 7,235,800 7,191,100 7,074,400 6,928,600
ROA 8.81% 9.63% 10.69% 12.00% 12.87% 12.40% 12.26% 11.41% 10.73% 8.67% 8.29% 6.44% 6.20% 6.43% 7.07% 8.86% 9.62% 10.64% 11.19% 11.33%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $765,200K ÷ $8,681,100K
= 8.81%

Packaging Corp Of America's return on assets (ROA) has exhibited a declining trend over the past two years. The ROA decreased from 12.77% in Q4 2022 to 8.74% in Q4 2023. This indicates that the company is generating less profit from its assets compared to the previous year.

Although there was a slight improvement in Q3 2023 with an ROA of 9.55%, the trend was not sustained as the ROA further decreased in Q4 2023. The highest ROA was observed in Q1 2023 at 11.90%, indicating a more efficient utilization of assets during that period.

Overall, the decreasing trend in ROA suggests that Packaging Corp Of America may be facing challenges in maximizing its profitability relative to its asset base. It is important for the company to assess its asset management strategies and operational efficiency to enhance ROA in the future.


Peer comparison

Dec 31, 2023