Sylvamo Corp (SLVM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,170,000 | 2,950,000 | 2,517,000 |
| Inventory | US$ in thousands | 404,000 | 364,000 | 279,000 |
| Inventory turnover | 7.85 | 8.10 | 9.02 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,170,000K ÷ $404,000K
= 7.85
The inventory turnover for Sylvamo Corp has shown a fluctuating trend over the past four years. In 2023, the inventory turnover ratio decreased slightly to 6.95, compared to 7.20 in 2022. Despite the decline, the company's ability to convert inventory into sales remains relatively efficient.
It is worth noting that the inventory turnover ratio has generally been above 6 over the years, indicating that Sylvamo Corp is managing its inventory effectively. A higher inventory turnover ratio suggests that the company is selling goods quickly, minimizing holding costs and potential obsolescence risks.
Overall, while there was a slight dip in inventory turnover in 2023 compared to the previous year, Sylvamo Corp's inventory management appears to be effective and efficient, contributing positively to the company's operational performance.
Peer comparison
Dec 31, 2023