International Paper (IP)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 18,619,000 | 18,640,000 | 18,567,000 | 18,515,000 | 18,916,000 | 19,448,000 | 20,237,000 | 20,944,000 | 21,161,000 | 21,114,000 | 21,426,000 | 21,653,000 | 21,779,000 | 21,932,000 | 21,341,000 | 20,591,000 | 20,580,000 | 20,839,000 | 21,284,000 | 22,085,000 |
| Total current assets | US$ in thousands | 6,424,000 | 6,643,000 | 6,557,000 | 6,459,000 | 6,608,000 | 6,780,000 | 6,476,000 | 6,615,000 | 6,770,000 | 6,622,000 | 7,046,000 | 7,184,000 | 7,096,000 | 9,896,000 | 12,226,000 | 12,167,000 | 11,236,000 | 11,288,000 | 6,599,000 | 7,215,000 |
| Total current liabilities | US$ in thousands | 4,258,000 | 4,353,000 | 4,114,000 | 3,854,000 | 3,959,000 | 3,882,000 | 4,067,000 | 4,266,000 | 5,000,000 | 4,805,000 | 4,352,000 | 4,142,000 | 4,144,000 | 4,698,000 | 8,635,000 | 8,390,000 | 8,284,000 | 8,476,000 | 8,330,000 | 9,342,000 |
| Working capital turnover | 8.60 | 8.14 | 7.60 | 7.11 | 7.14 | 6.71 | 8.40 | 8.92 | 11.96 | 11.62 | 7.95 | 7.12 | 7.38 | 4.22 | 5.94 | 5.45 | 6.97 | 7.41 | — | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $18,619,000K ÷ ($6,424,000K – $4,258,000K)
= 8.60
Working capital turnover is a financial ratio that measures how efficiently a company utilizes its working capital to generate revenue. The working capital turnover for International Paper ranges from 4.22 to 11.96 over the reported periods.
A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its operations and generate sales. International Paper's working capital turnover shows some fluctuations over time, with the highest ratio of 11.96 reported in December 31, 2022, and the lowest ratio of 4.22 reported in September 30, 2021.
Overall, International Paper's working capital turnover has remained relatively steady, suggesting that the company has been able to efficiently utilize its working capital to support its revenue generation activities. However, it is important for the company to continue monitoring and managing its working capital effectively to ensure sustainable growth and profitability.
Peer comparison
Dec 31, 2024