International Paper (IP)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,424,000 | 6,608,000 | 6,770,000 | 7,096,000 | 11,236,000 |
| Total current liabilities | US$ in thousands | 4,258,000 | 3,959,000 | 5,000,000 | 4,144,000 | 8,284,000 |
| Current ratio | 1.51 | 1.67 | 1.35 | 1.71 | 1.36 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,424,000K ÷ $4,258,000K
= 1.51
The current ratio of International Paper has exhibited fluctuations over the analyzed period. It increased from 1.36 in December 2020 to 1.71 in December 2021, indicating improved short-term liquidity. However, there was a slight decrease in the current ratio to 1.35 in December 2022, suggesting a potential decline in the company's ability to meet its short-term obligations. The ratio then recovered to 1.67 in December 2023, showing enhanced liquidity, but decreased again to 1.51 by December 2024.
Overall, International Paper's current ratio demonstrates a varying trend during the period under review, with some fluctuations in the company's ability to cover its short-term liabilities with its current assets. It is important for the company to closely monitor and manage its liquidity position to ensure financial stability and meet its payment obligations promptly.
Peer comparison
Dec 31, 2024