International Paper (IP)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,424,000 | 6,643,000 | 6,557,000 | 6,459,000 | 6,608,000 | 6,780,000 | 6,476,000 | 6,615,000 | 6,770,000 | 6,622,000 | 7,046,000 | 7,184,000 | 7,096,000 | 9,896,000 | 12,226,000 | 12,167,000 | 11,236,000 | 11,288,000 | 6,599,000 | 7,215,000 |
| 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 |
| Current ratio | 1.51 | 1.53 | 1.59 | 1.68 | 1.67 | 1.75 | 1.59 | 1.55 | 1.35 | 1.38 | 1.62 | 1.73 | 1.71 | 2.11 | 1.42 | 1.45 | 1.36 | 1.33 | 0.79 | 0.77 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,424,000K ÷ $4,258,000K
= 1.51
International Paper's current ratio has shown fluctuations over the past few years, indicating changes in its short-term liquidity position.
The current ratio was below 1 in the earlier years (March 2020 and June 2020), suggesting that the company may have had difficulty covering its short-term liabilities with its current assets during those periods. However, from September 2020 onwards, the current ratio started to improve, indicating a better ability to meet its short-term obligations.
The ratio peaked at 2.11 in September 2021, demonstrating a strong short-term liquidity position at that point. Subsequently, the current ratio fluctuated between 1.35 and 1.75 from December 2021 to September 2023, indicating a relatively stable liquidity position during this period.
In the most recent period, December 31, 2024, the current ratio stood at 1.51, which suggests that International Paper had $1.51 in current assets for every $1 in current liabilities. This level indicates that the company still has a reasonable capacity to cover its short-term obligations with its current assets, although it is slightly lower compared to the peak in September 2021.
Overall, International Paper's current ratio has generally improved from the earlier years to the most recent period, indicating a stronger short-term liquidity position, with fluctuations reflecting changes in the company's current asset and liability composition over time.
Peer comparison
Dec 31, 2024