IPNEUTRAL

Current Ratio

1.21x

Updated 413h ago

Sector Performance

50th percentile

IP

1.21x

Sector Median

1.20x

Sector Avg

2.57x

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Deep Analysis

The current ratio of 1.21x means that for every dollar of short-term liabilities, International Paper has $1.21 in current assets available to cover them, indicating a basic ability to pay near-term obligations.

This value exactly matches the sector median of 1.21x, placing the company at the 50th percentile among its peers, so its liquidity is perfectly average relative to the industry. Because year-over-year and quarter-over-quarter changes are both listed as N/A, there is no data to assess whether the ratio has been improving or deteriorating over recent periods. Without any trend information, the metric alone provides no signal about shifting risk; the stable but middling level suggests neither a liquidity strength nor a weakness. The combination of an average current ratio and absent trend data does not create a clear opportunity or warning. This metric supports the overall NEUTRAL verdict, as it shows the company’s short-term financial health is neither better nor worse than the typical peer.

Frequently Asked Questions

What does the Current Ratio tell investors about IP?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are IP's closest peers by Current Ratio?

The closest peers by Current Ratio include: KEY (0.42x), GEN (0.40x), CHTR (0.40x), USB (0.40x), DRI (0.39x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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IP

1.21x

Sector Median

1.20x

Sector Avg

2.57x

How IP's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.