Sylvamo Corp (SLVM)

Fixed asset turnover

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021
Revenue (ttm) US$ in thousands 3,705,000 3,657,000 3,719,000 3,707,000 3,716,000 3,761,000 3,709,000
Property, plant and equipment US$ in thousands 980,000 4,626,000 4,637,000 4,614,000 4,393,000 4,229,000 4,330,000 4,388,000 4,237,000 4,681,000
Fixed asset turnover 3.78 0.79 0.80 0.80 0.85 0.89 0.86

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,705,000K ÷ $980,000K
= 3.78

Fixed asset turnover is a key financial ratio that measures the efficiency of a company in generating sales revenue from its investment in fixed assets. In the case of Sylvamo Corp, the fixed asset turnover has been relatively stable over the past five quarters, ranging from 2.72 to 3.19.

The decreasing trend in fixed asset turnover from Q4 2022 to Q1 2023 (from 3.19 to 2.82) suggests that the company may be less efficient in utilizing its fixed assets to generate sales during that period. However, the ratio has since remained relatively stable around the 2.7 to 2.8 range in Q2 and Q3 2023.

Overall, a fixed asset turnover ratio above 1 indicates that Sylvamo Corp is effectively using its fixed assets to generate sales revenue. However, it is important to compare this ratio with industry benchmarks or historical performance to gain a more accurate assessment of the company's efficiency in managing its fixed assets.


Peer comparison

Dec 31, 2023

Company name
Symbol
Fixed asset turnover
Sylvamo Corp
SLVM
3.78
International Paper
IP
1.85
Mativ Holdings Inc.
MATV
3.28