International Paper (IP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.77 | 1.49 | 1.46 | 1.43 |
| Quick ratio | 1.05 | 0.49 | 0.39 | 0.90 | 0.98 | 0.93 | 1.02 | 1.13 | 1.15 | 1.66 | 1.06 | 0.49 | 1.03 | 1.01 | 0.47 | 0.48 | 0.44 | 0.85 | 0.84 | 0.83 |
| 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 |
The current ratio of International Paper Co. has shown a fluctuating trend over the past eight quarters, ranging from 1.55 to 1.75. It indicates that the company has generally maintained a healthy level of current assets to cover its current liabilities, with a recent Q4 2023 ratio of 1.67.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also exhibited variability, ranging from 1.06 to 1.29. The company's ability to cover its short-term obligations with its most liquid assets improved in Q4 2023 to 1.19.
The cash ratio, which specifically assesses the ability to cover current liabilities with cash and cash equivalents, has shown a similar pattern of fluctuations, with values oscillating between 0.28 and 0.48. The ratio was 0.42 in Q4 2023, indicating a lower level of cash coverage compared to the quick ratio.
Overall, International Paper Co. has generally maintained adequate liquidity levels over the past eight quarters based on these ratios, with some quarters displaying stronger liquidity positions than others. It would be beneficial for the company to continue monitoring and managing its liquidity position to ensure it can meet its short-term obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | 46.20 | 44.50 | 42.68 | 38.64 | 34.79 | 40.06 | 36.87 | 31.26 | 32.05 | 40.97 | 40.71 | 43.93 | 42.82 | 47.60 | 47.71 | 43.77 | 46.11 | 47.74 | 38.09 | 31.48 |
The cash conversion cycle of International Paper Co. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 44.22 days, which was lower compared to the previous quarter but higher than the same quarter in the previous year. This indicates that the company took slightly less time to convert its invested resources into cash in the most recent quarter.
Overall, International Paper Co.'s cash conversion cycle has been fairly consistent, hovering around the 40-50 day range, with some quarters showing shorter cycles (indicating more efficient cash management) and others showing longer cycles (indicating less efficient cash management). It is essential for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimal utilization of its resources and maintain healthy liquidity levels.