Sylvamo Corp (SLVM)

Short-term

Turnover ratios

Based on the activity ratios provided for Sylvamo Corp, let's analyze each ratio individually:

1. Inventory Turnover:
- Sylvamo Corp's inventory turnover ratio has been fluctuating over the years, ranging from a low of 5.31 to a high of 8.46. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which is generally positive as it reduces the risk of obsolete inventory.

2. Receivables Turnover:
- Unfortunately, there is no information provided for Sylvamo Corp's receivables turnover ratio across the given periods. This ratio is essential for understanding how efficiently the company is collecting its accounts receivable.

3. Payables Turnover:
- The data does not include any values for Sylvamo Corp's payables turnover ratio, which would have indicated how quickly the company is paying its suppliers.

4. Working Capital Turnover:
- Sylvamo Corp's working capital turnover has shown variability but overall has maintained a stable range. A higher working capital turnover ratio suggests that the company is efficiently using its working capital to generate sales. The ratio has ranged from 3.89 to 13.52, with some fluctuations indicating changes in the company's sales efficiency.

In conclusion, while Sylvamo Corp's inventory turnover and working capital turnover ratios provide some insights into its operational efficiency and liquidity, the lack of data for receivables turnover and payables turnover ratios hinders a complete analysis of the company's overall management of its working capital and relationships with customers and suppliers.

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Average number of days

Sylvamo Corp's Days of Inventory on Hand (DOH) ratio fluctuated over the years, ranging from a low of 43.12 days on June 30, 2022, to a high of 68.71 days on March 31, 2023. The company's inventory management improved towards the end of the period, as evidenced by the decreasing trend in DOH, reaching 45.88 days on December 31, 2024.

However, information on the Days of Sales Outstanding (DSO) and Number of Days of Payables ratios is not provided for any period, making it challenging to assess how efficiently Sylvamo Corp is collecting receivables and managing its payables.

Overall, a decreasing trend in the Days of Inventory on Hand ratio could indicate more efficient inventory management and better control over inventory levels, which may lead to reduced carrying costs and improved liquidity. Moving forward, it would be beneficial for Sylvamo Corp to provide data on DSO and payables to comprehensively evaluate the company's activity ratios and overall working capital effectiveness.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue. Sylvamo Corp's fixed asset turnover ratio has shown an increasing trend over the past few years, improving from 2.35 in March 2021 to 3.22 in December 2022, indicating that the company is generating more sales for each dollar invested in fixed assets.

On the other hand, the total asset turnover ratio reflects how well the company is utilizing all its assets to generate sales. Sylvamo Corp's total asset turnover ratio has been relatively stable over the years, hovering around 1.30 to 1.45 range. This indicates that the company is efficiently generating sales revenue in relation to its total assets.

Overall, the increasing trend in the fixed asset turnover ratio suggests that Sylvamo Corp is effectively using its fixed assets to drive sales growth, while the stable total asset turnover ratio indicates efficiency in utilizing all assets to generate revenue.