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International Paper Co (International Paper Co) Asset Turnover

: 0.20 (As of Dec. 2023)
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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. International Paper Co's Revenue for the three months ended in Dec. 2023 was $4,601 Mil. International Paper Co's Total Assets for the quarter that ended in Dec. 2023 was $23,606 Mil. Therefore, International Paper Co's Asset Turnover for the quarter that ended in Dec. 2023 was 0.20.

Asset Turnover is linked to ROE % through Du Pont Formula. International Paper Co's annualized ROE % for the quarter that ended in Dec. 2023 was -13.18%. It is also linked to ROA % through Du Pont Formula. International Paper Co's annualized ROA % for the quarter that ended in Dec. 2023 was -4.81%.


International Paper Co Asset Turnover Historical Data

The historical data trend for International Paper Co's Asset Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

International Paper Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.55 0.54 0.68 0.86 0.80

International Paper Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.21 0.21 0.20 0.19 0.20

Competitive Comparison

For the Packaging & Containers subindustry, International Paper Co's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


International Paper Co Asset Turnover Distribution

For the Packaging & Containers industry and Consumer Cyclical sector, International Paper Co's Asset Turnover distribution charts can be found below:

* The bar in red indicates where International Paper Co's Asset Turnover falls into.



International Paper Co Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

International Paper Co's Asset Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=18916/( (23940+23261)/ 2 )
=18916/23600.5
=0.80

International Paper Co's Asset Turnover for the quarter that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=4601/( (23951+23261)/ 2 )
=4601/23606
=0.19

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


International Paper Co  (NYSE:IP) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

International Paper Co's annulized ROE % for the quarter that ended in Dec. 2023 is

ROE %**(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-1136/8618.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1136 / 18404)*(18404 / 23606)*(23606/ 8618.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=-6.17 %*0.7796*2.739
=ROA %*Equity Multiplier
=-4.81 %*2.739
=-13.18 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

International Paper Co's annulized ROA % for the quarter that ended in Dec. 2023 is

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=-1136/23606
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-1136 / 18404)*(18404 / 23606)
=Net Margin %*Asset Turnover
=-6.17 %*0.7796
=-4.81 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


International Paper Co Asset Turnover Related Terms

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International Paper Co (International Paper Co) Business Description

Address
6400 Poplar Avenue, Memphis, TN, USA, 38197
International Paper manufactures packaging products and cellulose fibers. It accounts for roughly one third of the North American corrugated packaging market. Though it has operations in Brazil, Russia, India, and China, more than three fourths of its sales come from North America. International Paper serves a variety of end markets, including industrial, consumer products, and manufacturing.
Executives
Thomas J. Plath officer: Senior Vice President C/O INTERNATIONAL PAPER COMPANY, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Holly G Houghnour officer: Vice President & Controller C/O INTERNATIONAL PAPER COMPANY, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Kseniia N. Sosnina officer: Senior Vice President 6400 POPLAR AVENUE, MEMPHIS TN 38197
International Paper Co /new/ officer: Senior Vice President 6400 POPLAR AVENUE, MEMPHIS TN 38197
Joseph R. Saab officer: SVP, GC and Corp. Secretary 6400 POPLAR AVENUE, MEMPHIS TN 38197
Mark S Sutton director, officer: Chairman and CEO C\O INTERNATIONAL PAPER COMPANY, 6400 POPLAR AVE, MEMPHIS TN 38197
Aimee K. Gregg officer: Senior Vice President 6400 POPLAR AVENUE, MEMPHIS TN 38197
Allison B. Magness officer: Senior Vice President 6400 POPLAR AVENUE, MEMPHIS TN 38197
Timothy S Nicholls officer: SVP and CFO C/O INTERNATIONAL PAPER COMPANY, 6400 POPLAR AVENUE, MEMPHIS TN 38197
William Thomas Hamic officer: Senior Vice President 6400 POPLAR AVENUE, MEMPHIS TN 38197
John V Sims officer: Senior Vice President C/O INTERNATIONAL PAPER COMPANY, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Jeanmichel Ribieras officer: Senior Vice President C/O INTERNATIONAL PAPER COMPANY, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Lewis Clinton A. Jr. director C/O ZOETIS INC., 100 CAMPUS DRIVE, FLORHAM PARK NJ 07940
Gregory T Wanta officer: Senior Vice President C/O INTERNATIONAL PAPER COMPANY, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Donald G Macpherson director 100 GRAINGER PARKWAY, LAKE FOREST IL 60045

International Paper Co (International Paper Co) Headlines