International Paper (IP)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,170,000 | 1,159,000 | 1,049,000 | 1,070,000 | 1,113,000 | 1,149,000 | 746,000 | 636,000 | 804,000 | 511,000 | 826,000 | 1,031,000 | 1,295,000 | 2,122,000 | 706,000 | 787,000 | 595,000 | 678,000 | 847,000 | 1,239,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | -2,308,000 | -2,303,000 | — | 804,000 | 511,000 | 151,000 | 291,000 | 245,000 | 2,122,000 | 4,850,000 | 4,850,000 | 4,850,000 | 4,850,000 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.27 | 0.27 | 0.25 | 0.28 | 0.28 | -0.30 | -0.38 | 0.15 | 0.32 | 0.21 | 0.22 | 0.32 | 0.37 | 0.90 | 0.64 | 0.67 | 0.66 | 0.65 | 0.10 | 0.13 |
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 shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The quick ratio started at a low of 0.13 in March 2020 and experienced a significant improvement to reach 0.90 by September 30, 2021. However, it declined consistently thereafter, hitting a low of -0.38 in June 30, 2023. This negative quick ratio indicates potential issues with the company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio recovered slightly by December 31, 2023, and stabilized around 0.27 during the last three quarters of 2024. While the quick ratio improved from the negative figures, it still remains below 1.0 in most periods, suggesting that International Paper may face challenges in quickly covering its current liabilities with its liquid assets alone. Management may need to focus on improving the liquidity position to ensure the company's financial health and ability to meet short-term obligations.
Peer comparison
Dec 31, 2024