International Paper (IP)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,619,000 | 18,916,000 | 21,161,000 | 19,363,000 | 20,580,000 |
| Total current assets | US$ in thousands | 6,424,000 | 6,608,000 | 6,770,000 | 7,096,000 | 11,236,000 |
| Total current liabilities | US$ in thousands | 4,258,000 | 3,959,000 | 5,000,000 | 4,144,000 | 8,284,000 |
| Working capital turnover | 8.60 | 7.14 | 11.96 | 6.56 | 6.97 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $18,619,000K ÷ ($6,424,000K – $4,258,000K)
= 8.60
Based on the data provided for International Paper's working capital turnover ratio, we observe fluctuations over the years. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
In December 31, 2020, the working capital turnover was 6.97, indicating that for each dollar of working capital invested, the company generated $6.97 in sales revenue. The following year, on December 31, 2021, the ratio decreased to 6.56, suggesting a slight decrease in efficiency in utilizing working capital.
A significant improvement was observed in December 31, 2022, with the ratio jumping to 11.96, which indicates a substantial increase in efficiency in utilizing working capital to generate sales revenue. However, in December 31, 2023, the ratio dropped to 7.14, showing a decline in efficiency compared to the previous year.
By December 31, 2024, the working capital turnover ratio rose to 8.60, signifying an improvement in the company's ability to use its working capital effectively to generate sales revenue.
Overall, International Paper's working capital turnover ratio has shown variability over the years, with fluctuations that may indicate changes in the company's working capital management efficiency and its ability to generate revenue from its working capital investments. Further analysis and comparison with industry benchmarks would provide additional insights into the company's performance in this aspect.
Peer comparison
Dec 31, 2024