Packaging Corp of America (PKG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,997,300 | 3,887,200 | 3,848,600 | 3,757,700 | 3,667,100 | 3,971,200 | 3,964,500 | 3,779,300 | 3,607,200 | 3,608,300 | 3,444,300 | 3,331,200 | 3,246,300 | 3,205,400 | 3,133,100 | 3,149,900 | 3,071,000 | 3,034,700 | 2,921,200 | 2,794,600 |
| ROE | 19.14% | 20.26% | 22.53% | 25.70% | 28.08% | 26.06% | 25.80% | 24.57% | 23.31% | 20.73% | 18.48% | 14.58% | 14.20% | 14.78% | 16.42% | 20.68% | 22.68% | 25.20% | 27.10% | 28.08% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $765,200K ÷ $3,997,300K
= 19.14%
Packaging Corp Of America's return on equity (ROE) has shown a declining trend over the past few quarters. The ROE decreased from 27.87% in Q4 2022 to 18.99% in Q4 2023, indicating a downward trajectory in profitability generated from shareholders' equity during this period. While there was a slight increase in Q3 2023 to 20.10%, the subsequent quarters saw further decreases to 22.35% in Q2 2023 and 25.50% in Q1 2023.
Comparing the latest ROE of 18.99% in Q4 2023 with the same quarter in the previous year when it was 27.87%, there is a noticeable decrease in the company's ability to generate profits from the shareholders' equity investment. This decline may raise concerns about the company's operational efficiency and asset utilization in generating returns for its shareholders. Further analysis is warranted to identify the specific factors contributing to this trend and to assess the overall financial performance and sustainability of Packaging Corp Of America.
Peer comparison
Dec 31, 2023