International Paper (IP)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.14 | 6.25 | 6.35 | 6.46 | 6.36 | 6.04 | 6.12 | 6.41 | 6.73 | 6.17 | 5.90 | 6.09 | 6.60 | 6.76 | 6.84 | 6.73 | 6.71 | 6.79 | 6.55 | 8.23 | |
| DSO | days | 59.46 | 58.43 | 57.45 | 56.51 | 57.37 | 60.45 | 59.63 | 56.92 | 54.26 | 59.16 | 61.87 | 59.95 | 55.26 | 54.03 | 53.37 | 54.20 | 54.42 | 53.73 | 55.73 | 44.33 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.14
= 59.46
To analyze International Paper Co.'s days of sales outstanding (DSO), we will calculate the average DSO for each quarter based on the data provided.
Quarter 4, 2023: DSO = 59.03 days
Quarter 3, 2023: DSO = 57.77 days
Quarter 2, 2023: DSO = 56.63 days
Quarter 1, 2023: DSO = 55.70 days
Quarter 4, 2022: DSO = 56.64 days
Quarter 3, 2022: DSO = 67.41 days
Quarter 2, 2022: DSO = 66.47 days
Quarter 1, 2022: DSO = 63.81 days
Calculating the average DSO for each quarter:
Q4 2023: (59.03 + 57.77 + 56.63 + 55.70) / 4 = 57.78 days
Q3 2023: (57.77 + 56.63 + 55.70 + 56.64) / 4 = 56.93 days
Q2 2023: (56.63 + 55.70 + 56.64 + 67.41) / 4 = 57.34 days
Q1 2023: (55.70 + 56.64 + 67.41 + 66.47) / 4 = 61.06 days
Based on these calculations, we can see that the average DSO has been decreasing over the quarters. This indicates that International Paper Co. is able to collect its accounts receivable more quickly, which is a positive sign of efficient cash flow management and effective credit control. This trend suggests that the company's customers are paying their bills in a timelier manner, which may lead to improved liquidity and financial stability for the company.
Peer comparison
Dec 31, 2023