International Paper (IP)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 6.23 | 4.81 | 4.99 | 4.84 | 4.57 | 4.64 | 4.68 | 4.88 | 4.99 | 4.83 | 4.96 | 5.09 | 5.89 | 5.58 | 5.73 | 5.55 | 3.90 | 4.02 | 2.27 | 2.45 | |
| Number of days of payables | days | 58.57 | 75.86 | 73.19 | 75.45 | 79.79 | 78.61 | 78.05 | 74.84 | 73.09 | 75.57 | 73.64 | 71.70 | 61.92 | 65.37 | 63.68 | 65.80 | 93.65 | 90.87 | 160.75 | 149.05 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.23
= 58.57
The average number of days of payables for International Paper Co. has shown a slight fluctuation over the past eight quarters, ranging from a low of 60.26 days in Q2 2023 to a high of 71.48 days in Q3 2022. The most recent data point for Q4 2023 indicates that the company takes approximately 65.40 days to pay its suppliers on average.
A higher number of days of payables generally indicates that the company is taking longer to pay its vendors, potentially benefiting from improved working capital management or negotiating better credit terms. On the other hand, a lower number of days of payables could suggest that the company is paying its suppliers more quickly.
It is important to consider industry norms and trends when analyzing this ratio, as different industries may have varying payment practices and relationships with suppliers. Additionally, further analysis of the company's cash flow, liquidity position, and overall financial health would provide a more comprehensive understanding of its payables management strategy.
Peer comparison
Dec 31, 2023