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International Paper Co (International Paper Co) Return-on-Tangible-Equity : 4.33% (As of Mar. 2024)


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What is International Paper Co Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. International Paper Co's annualized net income for the quarter that ended in Mar. 2024 was $224 Mil. International Paper Co's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $5,174 Mil. Therefore, International Paper Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 4.33%.

The historical rank and industry rank for International Paper Co's Return-on-Tangible-Equity or its related term are showing as below:

IP' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.47   Med: 33.45   Max: 309.59
Current: 5.47

During the past 13 years, International Paper Co's highest Return-on-Tangible-Equity was 309.59%. The lowest was 5.47%. And the median was 33.45%.

IP's Return-on-Tangible-Equity is ranked worse than
55.76% of 373 companies
in the Packaging & Containers industry
Industry Median: 6.96 vs IP: 5.47

International Paper Co Return-on-Tangible-Equity Historical Data

The historical data trend for International Paper Co's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart

International Paper Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.27 11.43 34.62 27.55 5.56

International Paper Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Return-on-Tangible-Equity 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 13.27 18.26 12.21 -21.08 4.33

Competitive Comparison of International Paper Co's Return-on-Tangible-Equity

For the Packaging & Containers subindustry, International Paper Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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's Return-on-Tangible-Equity Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, International Paper Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where International Paper Co's Return-on-Tangible-Equity falls into.



International Paper Co Return-on-Tangible-Equity Calculation

International Paper Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=288/( (5236+5131 )/ 2 )
=288/5183.5
=5.56 %

International Paper Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=224/( (5131+5216)/ 2 )
=224/5173.5
=4.33 %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


International Paper Co  (NYSE:IP) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


International Paper Co Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of International Paper Co's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


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