Sylvamo Corp (SLVM)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.85 | 6.95 | 7.20 | 6.77 | 6.14 | |
| DOH | days | 46.51 | 52.50 | 50.73 | 53.92 | 59.41 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.85
= 46.51
The days of inventory on hand (DOH) is a crucial ratio for assessing how efficiently a company manages its inventory. Sylvamo Corp's DOH has shown a decreasing trend over the past five years, declining from 59.41 days as of December 31, 2020, to 46.51 days as of December 31, 2024.
A decreasing trend in DOH generally indicates that the company is improving its inventory management efficiency by reducing the number of days it takes to sell its inventory. It suggests that Sylvamo Corp may be controlling its inventory levels more effectively, which can lead to cost savings and improved cash flow.
However, despite the decreasing trend, it is essential to compare Sylvamo Corp's DOH with industry benchmarks and historical data to gain a more comprehensive understanding of its inventory management performance. A lower DOH is generally favorable, but it should be analyzed in conjunction with other financial ratios and operational factors to assess the overall health and performance of the company.
Peer comparison
Dec 31, 2024