Sylvamo Corp (SLVM)
Payables 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 |
| Payables | US$ in thousands | 421,000 | 453,000 | 387,000 |
| Payables turnover | 7.53 | 6.51 | 6.50 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,170,000K ÷ $421,000K
= 7.53
Sylvamo Corp's payables turnover ratio has shown an increasing trend over the past four years, with values of 6.67, 5.78, 5.16, and 7.40 for the years ending December 31, 2023, 2022, 2021, and 2020 respectively. This indicates that the company has been managing its accounts payable more efficiently in recent years, as it takes fewer days to pay off its suppliers. A higher payables turnover ratio typically suggests that the company is paying its suppliers more quickly, which could be beneficial for maintaining good relationships with vendors. However, it's important to also consider the industry norms and the company's specific circumstances when interpreting this ratio.
Peer comparison
Dec 31, 2023