Sylvamo Corp (SLVM)

Short-term

Turnover ratios

Based on the data provided for Sylvamo Corp, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio shows how efficiently Sylvamo Corp is managing its inventory.
- The trend shows an improvement from 6.14 in 2020 to 7.85 in 2024.
- This indicates that the company is selling its inventory at a faster rate each year, which is generally a positive sign of effective inventory management.

2. Receivables Turnover:
- The receivables turnover ratio is not provided in the data, indicating that information on how quickly the company collects its accounts receivable is not available.
- Without this information, it is challenging to assess the efficiency of Sylvamo Corp in collecting payments from its customers.

3. Payables Turnover:
- The payables turnover ratio is also not provided in the data, indicating that information on how long it takes for the company to pay its suppliers is not available.
- This ratio is important for understanding the company's payment policies and relationships with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company is using its working capital to generate sales.
- The trend shows some fluctuations, with a peak of 10.01 in 2021 and a decrease to 7.04 in 2022 before rising again.
- An increasing ratio indicates that Sylvamo Corp is generating more revenue relative to its working capital, which suggests efficient utilization of resources.

Overall, the inventory turnover and working capital turnover ratios provide insights into Sylvamo Corp's operational efficiency and ability to generate sales. However, the lack of data on receivables and payables turnover limits the comprehensive analysis of the company's overall working capital management and relationships with customers and suppliers.

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Average number of days

Based on the provided data for Sylvamo Corp activity ratios, it can be observed that the Days of Inventory on Hand (DOH) has shown a declining trend from 59.41 days as of December 31, 2020, to 46.51 days as of December 31, 2024. This indicates that the company has been more efficient in managing its inventory levels over the years, which can be a positive sign of effective inventory control.

On the other hand, the Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis in the provided dataset. The DSO ratio measures how quickly a company collects its outstanding receivables, while the Number of Days of Payables ratio reflects the number of days it takes for a company to pay its suppliers.

In conclusion, while the trend in the Days of Inventory on Hand ratio for Sylvamo Corp is positive, further information on DSO and Number of Days of Payables would provide a more comprehensive understanding of the company's efficiency in managing its accounts receivable and payables.

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Long-term

Sylvamo Corp's fixed asset turnover has been increasing steadily over the years, which is a positive sign. The ratio increased from 2.29 in 2020 to 3.09 in 2022, indicating that the company is generating more sales revenue relative to its investment in fixed assets.

On the other hand, the total asset turnover ratio fluctuated over the period but showed an overall increasing trend. The ratio rose from 1.03 in 2020 to 1.45 in 2024, suggesting that Sylvamo Corp is using its total assets more efficiently to generate sales.

Overall, the upward trend in both fixed asset turnover and total asset turnover ratios indicates that Sylvamo Corp is effectively utilizing its assets to generate revenue, which is a positive indication of the company's operational efficiency and potential for growth.