International Paper Company — Earnings Quality Grade F
IP · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 59 days, change +3 days YoY
AR growth 57.8% vs revenue growth 49.3%
Revenue grew 49.3% but CFFO only 1.2%
Expense Quality
Inventory 35.4% vs COGS 46.0%. Normal
CapEx growth 101.6% is >2x revenue growth 49.3%
SG&A/Gross Profit = 57.9%. Normal
Gross margin 29.6%, change +1.6pp. Stable
Cash Flow Quality
CFFO/NI = -0.48. Below 1.0
FCF is negative ($-0.2B)
Accruals ratio = -13.7%. Low accruals
Cash $1.1B covers only 11% of debt $10.3B
Balance Sheet Health
Goodwill+Intangibles $9.4B = 63% of equity. Over 50%
Debt/EBITDA = 158.7x (>4x). Interest coverage = -0.0x (<2x). Financial stress
Other assets -79.6% vs revenue 49.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 201% YoY
Manipulation Score
M-Score = -2.70 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10