International Paper (IP)

Short-term

Turnover ratios

Inventory Turnover: International Paper's inventory turnover has shown a positive trend over the past few years, increasing from 7.53 to 8.46 from March 31, 2020, to December 31, 2021, before slightly decreasing to 7.80 by December 31, 2024. This indicates that the company is efficiently managing its inventory by selling and restocking goods at a faster pace.

Receivables Turnover: The data does not provide information on International Paper's receivables turnover ratios, indicating that the company may not have significant data available for this metric or it may not be a focus area for the organization in this analysis.

Payables Turnover: Similar to receivables turnover, the data does not include figures for International Paper's payables turnover, suggesting that information regarding the speed at which the company pays its suppliers or creditors is not available or closely monitored in this context.

Working Capital Turnover: International Paper's working capital turnover has fluctuated over the years, with a notable increase from 5.45 on March 31, 2021, to a peak of 11.96 on December 31, 2022. This implies that the company has been effectively utilizing its working capital to generate revenue or sales. However, the ratio declined to 8.60 by December 31, 2024, suggesting a decrease in the efficiency of working capital management towards the end of the period.

In conclusion, while International Paper has shown positive inventory turnover and working capital turnover ratios, the absence of data for receivables and payables turnovers may limit a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Based on the provided data, we can analyze the activity ratios of International Paper using the following metrics:

1. Days of Inventory on Hand (DOH):
- International Paper's DOH has shown a fluctuating trend over the years, ranging from a low of 41.56 days to a high of 52.06 days.
- A decreasing trend in DOH indicates that the company is managing its inventory more efficiently, possibly through improved inventory management practices or increased demand for its products.
- The current DOH of 46.81 days suggests that the company holds inventory for approximately 46.81 days before it is sold or used in production.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for analysis, as values are marked as not provided for all the periods. Without this information, we are unable to determine the average number of days it takes for International Paper to collect payment from its customers.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is not provided for analysis across all the periods. This prevents us from evaluating the average number of days International Paper takes to pay its suppliers or other obligations.

In summary, while we can interpret the efficiency of International Paper in managing its inventory through the DOH metric, the unavailability of data for DSO and the number of days of payables limits our ability to fully assess the company's overall activity ratios related to accounts receivable and accounts payable.

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Long-term

International Paper's Fixed Asset Turnover ratio has been showing an increasing trend from March 31, 2020, to March 31, 2023, indicating improved efficiency in utilizing its fixed assets to generate sales. However, there was a slight decline in the ratio from March 31, 2023, to June 30, 2023, followed by a more significant decrease in the ratio from June 30, 2023, to September 30, 2023.

During the December 31, 2023, to March 31, 2024, period, there is no data available for Fixed Asset Turnover, suggesting potential adjustments in reporting or significant changes in the company's fixed asset utilization.

In contrast, International Paper's Total Asset Turnover ratio has varied slightly over the same time frame. The ratio increased from March 31, 2020, to December 31, 2021, indicating improved efficiency in generating sales from its total assets. From December 31, 2022, to December 31, 2024, the Total Asset Turnover ratio remained relatively stable, with minor fluctuations seen in the ratios.

Overall, the Fixed Asset Turnover and Total Asset Turnover ratios provide insights into International Paper's effectiveness in utilizing its fixed assets and total assets, respectively, to generate revenue.