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

Company name
Symbol
Quick ratio
International Paper
IP
1.05
Mativ Holdings Inc.
MATV
1.16
Sylvamo Corp
SLVM
0.93