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 | ||
|---|---|---|---|---|---|---|---|---|
| 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 |
| 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