Sylvamo Corp (SLVM)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.56 | 70.71 | 75.36 | 83.95 | 60.01 | 55.87 | 53.47 | |||
| Days of sales outstanding (DSO) | days | 42.16 | 42.22 | 43.18 | 43.42 | 44.20 | 46.78 | 46.15 | |||
| Number of days of payables | days | 65.20 | 59.23 | 60.63 | 67.86 | 74.68 | 65.46 | 63.33 | |||
| Cash conversion cycle | days | 39.53 | 53.69 | 57.91 | 59.52 | 29.53 | 37.19 | 36.30 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.56 + 42.16 – 65.20
= 39.53
The cash conversion cycle of Sylvamo Corp has been fluctuating over the past five quarters, ranging from 32.87 days in Q4 2022 to 57.91 days in Q1 2023. In Q4 2023, the cash conversion cycle decreased to 39.77 days, indicating an improvement in the company's efficiency in managing its working capital. This suggests that Sylvamo Corp has been able to convert its inventory and accounts receivable into cash more quickly in the most recent quarter compared to the previous quarters. However, it's worth noting that the cash conversion cycle increased in Q3 and Q2 2023 before trending downwards in Q4 2023. Overall, further analysis of Sylvamo Corp's operational and financial performance would be necessary to fully understand the reasons behind these fluctuations in the cash conversion cycle.
Peer comparison
Dec 31, 2023