International Paper (IP)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,218,000 | 16,498,000 | 15,715,000 | 16,121,000 | 17,192,000 |
| Payables | US$ in thousands | 2,442,000 | 2,708,000 | 2,606,000 | 2,035,000 | 2,423,000 |
| Payables turnover | 6.23 | 6.09 | 6.03 | 7.92 | 7.10 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,218,000K ÷ $2,442,000K
= 6.23
Based on the data provided, International Paper Co.'s payables turnover has shown some fluctuation over the past five years. The payables turnover ratio measures the efficiency with which the company manages its accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could be a sign of strong liquidity and good relationships with vendors.
From 2019 to 2020, there was a slight decrease in the payables turnover ratio from 6.30 to 6.20, suggesting that the company took slightly longer to pay its suppliers. However, this ratio increased in 2021 to 5.31 before recovering back to previous levels in 2022 and 2023 at 5.59 and 5.58, respectively.
Overall, the payables turnover ratio of International Paper Co. has been relatively stable, indicating consistent management of accounts payable. It is essential for investors and analysts to continue monitoring this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial performance and liquidity management.
Peer comparison
Dec 31, 2023