X100 Term Project

1439 WordsDec 17, 20136 Pages
International Paper Company Analysis Company Performance Summary High Performance The company shows consistent revenue growth over the past 3 years despite being in a declining industry. The company has made acquisitions in the past year with the thought of expansion. Long Term Focused Company has demonstrated forward thinking by acquiring a company to aid in its expansion. Revenue has a consistent growth rate over the past 3 years. Company Overview Founded in 1898 International Company with Global HQ in Memphis, Tennessee 70,000 Employees Ranked 107 on Fortune 500 in 2013 up from 111 in 2012 Business-to-Business Sale of a variety of paper and cardboard goods Industry Industry: Paper & Paper Products (taken from Yahoo!…show more content…
Cash Balance All Cash Balance and Revenue numbers are expressed in millions. 2010 2011 2012 Cash Balance & Growth or Decline compared to previous year (+/-) $2,073 (+) $3,994 (-) $1,302 Revenue $25,179 $26,034 $27,833 Sales to Cash Flow Ratio (Cash Balance/Revenue) .082 0.153 .047 International Paper’s Cash Balance fluctuated between the 3 years An increase in 2011 compared to 2010 A decrease in 2012 compared to 2011. The decrease in their Cash Balance in 2012 is most notably attributed to the acquisition of Temple-Inland for $3.7 Billion, on February 13, 2012. International Paper should be considered a high-risk investment because of its aggressive nature of acquisitioning. Ratios Current Ratio The Current Ratio is a ratio that shows a company’s ability to pay off its debts in the coming year (12 months). The Current Ratio is calculated by dividing current assets by current liabilities. International Paper’s Current Ratio 2012 All $ values are expressed in millions. Current Assets $8,905 Current Liabilities $4,998 Current Ratio 1.782 Debt to Total Asset Ratio The Debt to Total Asset Ratio is a ratio that shows the financial risk of a company by
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