Sylvamo Corp (SLVM)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 3,687,000 | 3,559,000 | 3,504,000 |
| Total current assets | US$ in thousands | 1,193,000 | 1,243,000 | 1,108,000 |
| Total current liabilities | US$ in thousands | 695,000 | 728,000 | 758,000 |
| Working capital turnover | 7.40 | 6.91 | 10.01 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,687,000K ÷ ($1,193,000K – $695,000K)
= 7.40
Sylvamo Corp's working capital turnover has fluctuated over the past four years. In 2023, the working capital turnover ratio was 7.47, indicating that the company generated $7.47 in revenue for every dollar of working capital. This was an increase from 2022 when the ratio was 7.04. The significant improvement in 2023 suggests that the company was able to more efficiently utilize its working capital to generate sales.
Comparing to 2021 and 2020, where the working capital turnover ratios were 10.01 and 4.78 respectively, we see a notable decrease in 2023 from the peak in 2021. This suggests that although the company's efficiency in utilizing working capital improved from the previous year, it has not yet reached the high levels achieved in 2021.
Overall, Sylvamo Corp's working capital turnover ratio indicates a variable efficiency in utilizing its working capital to generate sales over the past four years, with fluctuations in performance. Monitoring this ratio closely can help assess the company's ability to efficiently manage its working capital and generate revenue.
Peer comparison
Dec 31, 2023