International Paper (IP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,170,000 | 1,113,000 | 804,000 | 1,295,000 | 595,000 |
| Short-term investments | US$ in thousands | — | — | 804,000 | 245,000 | 4,850,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,258,000 | 3,959,000 | 5,000,000 | 4,144,000 | 8,284,000 |
| Quick ratio | 0.27 | 0.28 | 0.32 | 0.37 | 0.66 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,170,000K
+ $—K
+ $—K)
÷ $4,258,000K
= 0.27
The quick ratio of International Paper has displayed a declining trend over the past five years, starting at 0.66 on December 31, 2020, and decreasing to 0.27 by December 31, 2024. This may indicate a potential liquidity concern as the ratio has fallen below the generally acceptable threshold of 1.0. A quick ratio below 1.0 suggests that the company may have difficulties meeting its short-term obligations with its most liquid assets. International Paper may need to closely monitor its liquidity position and consider implementing strategies to improve its short-term financial health.
Peer comparison
Dec 31, 2024