International Paper (IP)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 48.68 | 50.59 | 46.81 | 47.87 | 52.06 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 48.68 | 50.59 | 46.81 | 47.87 | 52.06 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 48.68 + — – —
= 48.68
The cash conversion cycle (CCC) of International Paper has shown a generally decreasing trend from 2020 to 2022, indicating efficiency in managing its working capital. However, there was a slight increase in the CCC in 2023 followed by a decrease in 2024. The company takes approximately 47 to 53 days on average to convert its investments in inventory and other resources into cash flows from sales. A lower CCC suggests that the company is efficiently managing its inventory, receivables, and payables, thereby generating cash more quickly. Overall, International Paper's CCC indicates effective working capital management, which is crucial for financial health and operational efficiency.
Peer comparison
Dec 31, 2024