International Paper (IP)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,608,000 | 6,770,000 | 7,096,000 | 11,236,000 | 6,639,000 |
| Total current liabilities | US$ in thousands | 3,959,000 | 5,000,000 | 4,144,000 | 8,284,000 | 8,646,000 |
| Current ratio | 1.67 | 1.35 | 1.71 | 1.36 | 0.77 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,608,000K ÷ $3,959,000K
= 1.67
The current ratio of International Paper Co. has shown fluctuations over the past five years.
In 2019, the current ratio was 0.77, indicating that the company had insufficient current assets to cover its current liabilities. However, there has been a significant improvement in the current ratio over the subsequent years.
In 2020, the current ratio increased to 1.36, suggesting a better ability to meet short-term obligations. This improvement continued in 2021, with the current ratio reaching 1.71, indicating a further strengthening of the company's liquidity position.
However, in 2022, there was a slight decline in the current ratio to 1.35, which may raise some concerns about the company's ability to cover its current liabilities with its current assets.
The most recent data available for 2023 shows the current ratio at 1.67, which is an improvement from the previous year but slightly lower than the peak ratio in 2021.
Overall, the trend in the current ratio of International Paper Co. reflects variability in the company's liquidity position over the years, with improvements in recent years but a slight dip in 2022. Investors and stakeholders may monitor future changes in the current ratio to assess the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023