Sylvamo Corp (SLVM)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,872,000 | 2,939,000 | 2,904,000 | 2,941,000 | 2,874,000 | 2,728,000 | 2,750,000 | 2,688,000 | 2,649,000 | 2,673,000 | 2,573,000 | 2,322,000 | 2,198,000 | 2,059,000 | 1,972,000 | 2,095,000 | 2,101,000 |
| Inventory | US$ in thousands | 361,000 | 421,000 | 412,000 | 407,000 | 404,000 | 456,000 | 486,000 | 506,000 | 364,000 | 338,000 | 304,000 | 376,000 | 342,000 | 344,000 | 340,000 | 340,000 | 342,000 |
| Inventory turnover | 7.96 | 6.98 | 7.05 | 7.23 | 7.11 | 5.98 | 5.66 | 5.31 | 7.28 | 7.91 | 8.46 | 6.18 | 6.43 | 5.99 | 5.80 | 6.16 | 6.14 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,872,000K ÷ $361,000K
= 7.96
Sylvamo Corp's inventory turnover has experienced fluctuations over the periods evaluated. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times it sells and replaces its inventory within a given time frame.
From December 31, 2020, to March 31, 2021, the inventory turnover slightly increased from 6.14 to 6.16, indicating a stable efficiency in managing inventory. However, there was a decrease to 5.80 by June 30, 2021, suggesting a slightly lower turnover rate.
Subsequently, there was a gradual increase in inventory turnover, reaching 8.46 by June 30, 2022, indicating a significant improvement in inventory management efficiency. The ratio then stabilized around 7.0 for the periods from December 31, 2022, to December 31, 2024, indicating consistent turnover rates within this range.
It is essential to note that a higher inventory turnover ratio generally indicates better inventory management and liquidity, as the company is selling its products more quickly. A lower ratio may suggest overstocking or slow-moving inventory, which could tie up working capital.
Overall, Sylvamo Corp has shown fluctuations in its inventory turnover ratio, with periods of both improvement and stability. Further analysis and comparison with industry benchmarks can provide more insights into the company's inventory management efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024