Sylvamo Corp (SLVM)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 45.88 | 52.28 | 51.78 | 50.51 | 51.31 | 61.01 | 64.51 | 68.71 | 50.15 | 46.15 | 43.12 | 59.10 | 56.79 | 60.98 | 62.93 | 59.24 | 59.41 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 45.88 | 52.28 | 51.78 | 50.51 | 51.31 | 61.01 | 64.51 | 68.71 | 50.15 | 46.15 | 43.12 | 59.10 | 56.79 | 60.98 | 62.93 | 59.24 | 59.41 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 45.88 + — – —
= 45.88
The cash conversion cycle of Sylvamo Corp has shown some fluctuations over the periods provided in the dataset. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From December 31, 2020, to June 30, 2022, Sylvamo Corp managed to improve its cash conversion cycle from 59.41 days to 43.12 days, indicating more efficient management of inventory and collection of receivables. This improvement suggests that the company may have optimized its operations to generate cash more quickly.
However, from March 31, 2023, to December 31, 2024, the cash conversion cycle increased to 45.88 days, showing a reversal in efficiency. This uptick could be due to various factors such as increased inventory levels, longer credit terms offered to customers, or delays in collecting receivables, all of which may tie up cash within the business for longer periods.
Overall, Sylvamo Corp should closely monitor its cash conversion cycle to ensure efficient management of working capital and optimize its cash flow position. Periods of increase should be investigated to identify the root causes and implement necessary adjustments to improve the cycle and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2024