International Paper (IP)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,376,000 | 13,629,000 | 15,143,000 | 13,832,000 | 14,373,000 |
| Inventory | US$ in thousands | 1,784,000 | 1,889,000 | 1,942,000 | 1,814,000 | 2,050,000 |
| Inventory turnover | 7.50 | 7.21 | 7.80 | 7.63 | 7.01 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $13,376,000K ÷ $1,784,000K
= 7.50
To analyze International Paper's inventory turnover, we observe a consistent trend over the years. The inventory turnover ratio increased from 7.01 in December 31, 2020, to 7.63 in December 31, 2021, and continued to rise to 7.80 in December 31, 2022. However, in December 31, 2023, there was a slight decline to 7.21, and it slightly recovered to 7.50 by December 31, 2024.
Overall, International Paper has been effectively managing its inventory turnover, indicating that the company is efficiently selling and replenishing its inventory within a relatively stable timeframe. This trend suggests that International Paper has a healthy balance between managing its inventory levels to meet demand and avoid excess inventory costs, contributing to its operational efficiency and potentially enhancing its financial performance.
Peer comparison
Dec 31, 2024