International Paper (IP)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,685,000 | 42,080,000 | 39,054,000 | 40,947,000 | 44,282,000 |
| Total current assets | US$ in thousands | 6,608,000 | 6,770,000 | 7,096,000 | 11,236,000 | 6,639,000 |
| Total current liabilities | US$ in thousands | 3,959,000 | 5,000,000 | 4,144,000 | 8,284,000 | 8,646,000 |
| Working capital turnover | 7.05 | 23.77 | 13.23 | 13.87 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $18,685,000K ÷ ($6,608,000K – $3,959,000K)
= 7.05
Based on the data provided, the working capital turnover ratio for International Paper Co. has exhibited some fluctuations over the past five years. In 2023, the ratio stands at 7.14, showing a decrease from the previous year's ratio of 11.96. This decline suggests that the company may be experiencing inefficiencies in managing its working capital to generate sales.
Comparing the 2023 ratio to historical data, the working capital turnover was higher in 2022 at 11.96, indicating that the company was more effective in utilizing its working capital to generate revenue in the previous year. However, in 2021, the ratio dropped to 6.56, signifying a potential decrease in operational efficiency in that year compared to 2020, where the ratio was 6.97.
It is worth noting that data for 2019 is not available, making it challenging to assess the trend over a longer period accurately. Overall, a working capital turnover ratio measures how efficiently a company is using its working capital to support sales. The fluctuations in International Paper Co.'s ratio indicate varying levels of effectiveness in managing its working capital to generate revenue over the years.
Peer comparison
Dec 31, 2023