International Paper (IP)

Cash ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash and cash equivalents US$ in thousands 950,000 1,149,000 746,000 636,000 804,000 511,000 826,000 1,031,000 1,295,000 2,122,000 706,000 491,000 595,000 678,000 847,000 1,239,000 511,000 697,000 787,000 641,000
Short-term investments US$ in thousands 163,000 -2,308,000 -2,303,000 804,000 511,000 151,000 291,000 245,000 2,122,000 4,850,000 296,000 4,850,000 4,850,000
Total current liabilities US$ in thousands 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 8,646,000 4,729,000 5,049,000 4,953,000
Cash ratio 0.28 -0.30 -0.38 0.15 0.32 0.21 0.22 0.32 0.37 0.90 0.64 0.09 0.66 0.65 0.10 0.13 0.06 0.15 0.16 0.13

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($950,000K + $163,000K) ÷ $3,959,000K
= 0.28

The cash ratio of International Paper Co. over the past eight quarters has shown fluctuation. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In Q1 2022, the cash ratio was relatively high at 0.48, indicating a strong cash position compared to short-term liabilities. However, in subsequent quarters, the cash ratio decreased, reaching its lowest point of 0.25 in Q3 2022, before rebounding in Q4 2022 to 0.28.

The trend continued in 2023, with fluctuations in the cash ratio. The cash ratio was 0.31 in Q1 2023, followed by a decrease to 0.34 in Q2 2023, and further to 0.46 in Q3 2023. The trend reversed in Q4 2023, with a decrease to 0.42.

Overall, the decreasing trend in the cash ratio from Q1 2022 to Q3 2022 may suggest a temporary strain on International Paper Co.'s liquidity position. The subsequent recovery in Q4 2022 and fluctuating ratios in 2023 indicate a varying ability to cover short-term obligations with available cash.

Further analysis of the company's cash management practices, investment strategies, and overall financial health would be necessary to fully assess the implications of these fluctuations in the cash ratio.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash ratio
International Paper
IP
0.28
Mativ Holdings Inc.
MATV
0.43
Sylvamo Corp
SLVM
0.32