International Paper (IP)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,170,000 | 1,159,000 | 1,049,000 | 1,070,000 | 1,113,000 | 1,149,000 | 746,000 | 636,000 | 804,000 | 511,000 | 826,000 | 1,031,000 | 1,295,000 | 2,122,000 | 706,000 | 787,000 | 595,000 | 678,000 | 847,000 | 1,239,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | -2,308,000 | -2,303,000 | — | 804,000 | 511,000 | 151,000 | 291,000 | 245,000 | 2,122,000 | 4,850,000 | 4,850,000 | 4,850,000 | 4,850,000 | — | — |
| 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 |
| Cash ratio | 0.27 | 0.27 | 0.25 | 0.28 | 0.28 | -0.30 | -0.38 | 0.15 | 0.32 | 0.21 | 0.22 | 0.32 | 0.37 | 0.90 | 0.64 | 0.67 | 0.66 | 0.65 | 0.10 | 0.13 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,170,000K
+ $—K)
÷ $4,258,000K
= 0.27
International Paper's cash ratio, a liquidity ratio that measures the company's ability to cover its short-term obligations solely with cash or cash equivalents, has shown some fluctuations over the years.
From March 2020 to June 2023, the cash ratio varied significantly, ranging from a low of -0.38 in June 2023 to a high of 0.90 in September 2021. These fluctuations may indicate varying levels of cash availability relative to short-term liabilities during this period.
However, from December 2023 to December 2024, the cash ratio stabilized in the range of 0.25 to 0.27, suggesting a more consistent ability to cover short-term obligations with available cash reserves during this period.
Overall, the cash ratio trend reflects the company's liquidity position and its ability to meet short-term financial obligations with cash on hand, providing insights into International Paper's financial health in terms of its liquidity management. Monitoring these ratios helps in assessing the company's short-term solvency and liquidity risks.
Peer comparison
Dec 31, 2024