International Paper (IP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.79 | 2.68 | 2.68 | 2.79 | 2.78 | 2.70 | 2.82 | 2.83 | 2.82 | 2.62 | 2.80 | 2.83 | 2.78 | 3.06 | 3.77 | 4.06 | 4.04 | 4.49 | 4.61 | 4.84 |
Based on the provided data, International Paper has consistently maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 over the period from March 31, 2020, to December 31, 2024. This indicates that the company has no significant debt in relation to its total assets, capital, or equity during this period.
Additionally, the financial leverage ratio of International Paper has shown a declining trend from 4.84 on March 31, 2020, to 2.79 on December 31, 2024. This downward trend suggests that the company has been gradually reducing its reliance on debt to finance its operations and investments, which may improve its overall financial stability and reduce financial risk.
Overall, International Paper's solvency ratios reflect a strong financial position with minimal debt obligations and decreasing financial leverage over the analyzed period. This indicates that the company has been managing its debt levels effectively and maintaining a healthy balance between debt and equity in its capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.79 | 1.47 | 1.75 | 2.05 | 2.83 | 5.43 | 5.00 | 5.62 | 5.81 | 4.68 | 5.15 | 5.33 | 5.37 | 5.41 | 5.06 | 4.00 | 3.54 | 4.18 | 4.38 | 4.75 |
The interest coverage ratio of International Paper has shown fluctuations over the years, but overall, it has remained relatively strong. The interest coverage ratio measures a company's ability to meet its interest obligations using its operating income.
From March 2020 to December 2022, International Paper's interest coverage ratio ranged from 3.54 to 5.81, indicating that the company was comfortably able to cover its interest payments with its operating income during this period. The highest interest coverage ratio was recorded in December 2022 at 5.81, reflecting a solid ability to pay off interest expenses.
However, there was a noticeable decline in the interest coverage ratio in the following quarters, dropping to as low as 1.47 by September 2024. This significant decrease could imply that International Paper's operating income may have decreased relative to its interest expenses, potentially indicating a higher risk of financial distress if not addressed.
Overall, while International Paper's interest coverage ratio has shown some fluctuations, it is important for the company to closely monitor its financial performance to ensure that it maintains a healthy level of interest coverage to meet its interest obligations effectively.