International Paper (IP)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 15,218,000 | 11,369,000 | 11,939,000 | 12,292,000 | 12,387,000 | 12,388,000 | 12,523,000 | 12,959,000 | 13,014,000 | 13,060,000 | 12,714,000 | 11,984,000 | 11,995,000 | 12,429,000 | 12,645,000 | 13,196,000 | 9,444,000 | 9,435,000 | 5,672,000 | 6,166,000 |
| Inventory | US$ in thousands | 1,889,000 | 1,929,000 | 1,911,000 | 1,939,000 | 1,942,000 | 1,976,000 | 1,897,000 | 1,746,000 | 1,814,000 | 2,053,000 | 1,828,000 | 1,828,000 | 1,626,000 | 2,007,000 | 2,010,000 | 2,002,000 | 2,208,000 | 2,194,000 | 2,224,000 | 2,301,000 |
| Inventory turnover | 8.06 | 5.89 | 6.25 | 6.34 | 6.38 | 6.27 | 6.60 | 7.42 | 7.17 | 6.36 | 6.96 | 6.56 | 7.38 | 6.19 | 6.29 | 6.59 | 4.28 | 4.30 | 2.55 | 2.68 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,218,000K ÷ $1,889,000K
= 8.06
The inventory turnover for International Paper Co. has shown a consistent trend over the past eight quarters, ranging from 6.89 to 7.92. This indicates that the company is effectively managing its inventory levels and converting them into sales efficiently. The highest inventory turnover was recorded in Q1 2022 at 7.92, while the lowest was in Q3 2022 at 6.89.
The average inventory turnover for the period is calculated to be approximately 7.41, which suggests that, on average, International Paper Co. is able to sell and replace its inventory roughly 7.41 times per year. This indicates a healthy balance between maintaining optimal inventory levels and ensuring that products are not sitting idle for extended periods.
Overall, the consistent and relatively high inventory turnover figures indicate that International Paper Co. is effectively managing its inventory, which can lead to improved liquidity, reduced carrying costs, and potentially higher profitability. However, it is essential to compare these ratios with industry benchmarks and trend analysis to gain a more comprehensive understanding of the company's performance in inventory management.
Peer comparison
Dec 31, 2023
Dec 31, 2023