International Paper (IP)
Payables 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 |
| Payables | US$ in thousands | 2,442,000 | 2,363,000 | 2,394,000 | 2,541,000 | 2,708,000 | 2,668,000 | 2,678,000 | 2,657,000 | 2,606,000 | 2,704,000 | 2,565,000 | 2,354,000 | 2,035,000 | 2,226,000 | 2,206,000 | 2,379,000 | 2,423,000 | 2,349,000 | 2,498,000 | 2,518,000 |
| 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 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $15,218,000K ÷ $2,442,000K
= 6.23
To analyze International Paper Co.'s payables turnover, we focus on the trend over the last eight quarters. The payables turnover ratio indicates the efficiency with which the company manages its trade payables by comparing the cost of goods sold to the average accounts payable balance.
The payables turnover ratio has shown consistent performance over the quarters, ranging from 5.11 to 6.06. The slight fluctuations suggest that International Paper Co. has been effectively managing its payments to suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, potentially taking advantage of early payment discounts or maintaining good relationships with suppliers.
The Q2 and Q3 of 2023 showed the highest payables turnover ratios at 6.06 and 5.93, respectively, indicating efficient management of payable balances during these periods. However, Q1 of 2022 had the lowest ratio at 5.11, suggesting a slightly slower payment cycle during that quarter.
Overall, the trend in International Paper Co.'s payables turnover reflects a consistent and efficient approach to managing its trade payables, which is crucial for maintaining good supplier relationships and optimizing working capital.
Peer comparison
Dec 31, 2023