International Paper (IP)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 13,910,000 | 14,624,000 | 14,627,000 | 14,366,000 | 14,311,000 | 14,015,000 | 14,500,000 | 14,946,000 | 15,143,000 | 15,134,000 | 15,228,000 | 15,335,000 | 15,343,000 | 15,343,000 | 14,960,000 | 14,474,000 | 14,373,000 | 14,380,000 | 14,611,000 | 15,085,000 |
| Inventory | US$ in thousands | 1,784,000 | 1,795,000 | 1,728,000 | 1,771,000 | 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 | 2,050,000 | 2,007,000 | 2,010,000 | 2,002,000 |
| Inventory turnover | 7.80 | 8.15 | 8.46 | 8.11 | 7.58 | 7.27 | 7.59 | 7.71 | 7.80 | 7.66 | 8.03 | 8.78 | 8.46 | 7.47 | 8.18 | 7.92 | 7.01 | 7.16 | 7.27 | 7.53 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $13,910,000K ÷ $1,784,000K
= 7.80
Inventory turnover is a key efficiency ratio that measures how many times a company sells and replaces its inventory during a specific period. For International Paper, the inventory turnover has shown a fluctuating trend over the analyzed periods.
The inventory turnover ratio for International Paper ranged between 7.01 and 8.78 during the observed time frame. The highest inventory turnover was recorded on March 31, 2022, at 8.78, indicating that the company efficiently managed its inventory by selling and replacing it more frequently during that period.
On the other hand, the lowest inventory turnover was reported on December 31, 2020, with a ratio of 7.01, suggesting that the company took a longer time to sell and replenish its inventory during that quarter.
Overall, a higher inventory turnover ratio signifies that the company is effectively managing its inventory, while a lower ratio may indicate inefficiencies in inventory management. International Paper's inventory turnover ratios have shown variability, indicating fluctuations in how efficiently the company is converting its inventory into sales over the analyzed periods.
Peer comparison
Dec 31, 2024
Dec 31, 2024