International Paper (IP)
Quick ratio
| 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 | US$ in thousands | 950,000 | 1,149,000 | 746,000 | 636,000 | 804,000 | 511,000 | 826,000 | 1,031,000 | 1,295,000 | 2,122,000 | 706,000 | 491,000 | 595,000 | 678,000 | 847,000 | 1,239,000 | 511,000 | 697,000 | 787,000 | 641,000 |
| Short-term investments | US$ in thousands | 163,000 | -2,308,000 | -2,303,000 | — | 804,000 | 511,000 | 151,000 | 291,000 | 245,000 | 2,122,000 | 4,850,000 | 296,000 | 4,850,000 | 4,850,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 3,059,000 | 3,078,000 | 3,140,000 | 3,196,000 | 3,284,000 | 3,453,000 | 3,462,000 | 3,363,000 | 3,232,000 | 3,549,000 | 3,608,000 | 3,342,000 | 3,064,000 | 3,034,000 | 3,060,000 | 3,226,000 | 3,280,000 | 3,305,000 | 3,477,000 | 3,493,000 |
| Total current liabilities | US$ in thousands | 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 | 8,646,000 | 4,729,000 | 5,049,000 | 4,953,000 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($950,000K
+ $163,000K
+ $3,059,000K)
÷ $3,959,000K
= 1.05
The quick ratio of International Paper Co. has shown some fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In Q4 2023, the quick ratio was 1.19, indicating that the company had $1.19 in liquid assets for every $1 of current liabilities. This is a slight decrease from the previous quarter's ratio of 1.25, but still above the ideal threshold of 1, suggesting that the company remains able to cover its short-term obligations.
Looking further back, the quick ratio has generally trended upwards since Q1 2022, where it was 1.29. This suggests an improvement in the company's liquidity position over the past two years. However, it's worth noting that the quick ratio dipped to as low as 0.94 in Q4 2022, indicating a temporary weakening in liquidity.
Overall, the recent quick ratios indicate that International Paper Co. has maintained a relatively stable liquidity position, with enough liquid assets to meet its short-term obligations. However, management should continue to monitor this ratio closely to ensure the company's ability to weather any potential financial challenges in the future.
Peer comparison
Dec 31, 2023