Sylvamo Corp (SLVM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 111,000 | 280,000 | 95,000 |
| Short-term investments | US$ in thousands | 109,000 | 80,000 | 64,000 |
| Total current liabilities | US$ in thousands | 695,000 | 728,000 | 758,000 |
| Cash ratio | 0.32 | 0.49 | 0.21 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($111,000K
+ $109,000K)
÷ $695,000K
= 0.32
The Cash Ratio of Sylvamo Corp has fluctuated over the past four years. In 2023, the company's cash ratio stands at 0.43, which indicates that for every dollar of current liabilities, Sylvamo Corp has $0.43 in cash and cash equivalents readily available to cover its short-term obligations. This represents a decrease from the previous year's ratio of 0.59.
The downward trend from 2022 to 2023 may suggest a decrease in the company's ability to cover its short-term liabilities with its cash holdings. However, it is important to note that the cash ratio in 2023 is still higher than in 2021 (0.36) and 2020 (0.32), indicating an improvement in the company's liquidity position over the past two years.
Overall, while Sylvamo Corp's cash ratio has decreased in 2023, the company still maintains a reasonable level of liquidity to meet its short-term obligations. Monitoring this ratio over time can provide insights into the company's financial health and ability to manage its liquidity effectively.
Peer comparison
Dec 31, 2023