Sylvamo Corp (SLVM)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,833,000 | 2,809,000 | 2,619,000 | 2,315,000 | 2,101,000 |
| Inventory | US$ in thousands | 361,000 | 404,000 | 364,000 | 342,000 | 342,000 |
| Inventory turnover | 7.85 | 6.95 | 7.20 | 6.77 | 6.14 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,833,000K ÷ $361,000K
= 7.85
The inventory turnover for Sylvamo Corp has shown a steady increase over the past five years, indicating an efficient management of its inventory. In December 31, 2020, the inventory turnover was 6.14, which improved to 6.77 in December 31, 2021, and further increased to 7.20 in December 31, 2022. Although there was a slight dip in the turnover to 6.95 in December 31, 2023, it rebounded significantly to 7.85 in December 31, 2024.
This upward trend in inventory turnover suggests that Sylvamo Corp is selling its inventory more frequently within a year, which is a positive sign of effective inventory management. A higher inventory turnover ratio indicates that the company is efficiently managing its inventory levels, reducing holding costs, and potentially avoiding obsolete inventory issues. Overall, the increasing trend in inventory turnover implies that Sylvamo Corp's operations are becoming more efficient in converting inventory into sales.
Peer comparison
Dec 31, 2024