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