Sylvamo Corp (SLVM)

Liquidity ratios

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
Current ratio 1.56 1.72 1.68 1.72 1.72 1.76 1.74 1.67 1.71 1.37 1.52 1.71 1.46 1.30 2.43 0.18 2.28
Quick ratio 0.30 0.35 0.07 0.32 0.40 0.29 0.25 0.26 0.49 0.32 0.36 0.67 0.47 0.17 0.42 0.18 0.19
Cash ratio 0.30 0.35 0.07 0.32 0.40 0.29 0.25 0.26 0.49 0.32 0.36 0.67 0.47 0.17 0.42 0.18 0.19

Sylvamo Corp's liquidity ratios have shown fluctuations over the past few years. The current ratio, which indicates the company's ability to cover its short-term liabilities with its current assets, has varied between 1.30 and 2.43. Although the ratio dipped to as low as 0.18 in March 2021, it generally improved to reach a peak of 2.43 in June 2021 before stabilizing around 1.50 in the most recent periods.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been volatile, ranging from 0.07 to 0.67. This ratio provides insight into the company's ability to meet its short-term obligations without relying on the sale of inventory. Notably, there was a significant drop in the quick ratio to 0.07 in June 2024, indicating potential challenges in meeting immediate liabilities without inventory liquidation.

The cash ratio, which assesses the company's ability to cover its current liabilities with cash and cash equivalents, mirrored the quick ratio trend, with fluctuations between 0.07 and 0.67. The cash ratio remained relatively stable until June 2024 when it experienced a sharp decline to 0.07, suggesting a reduced capacity to settle short-term debts solely with cash reserves.

Overall, Sylvamo Corp's liquidity ratios demonstrate a mix of strengths and weaknesses, highlighting the need for consistent monitoring and management of its short-term financial position to ensure operational stability and solvency.

Additional liquidity measure

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
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

The cash conversion cycle of Sylvamo Corp has shown fluctuations over the period from December 31, 2020, to December 31, 2024. The cash conversion cycle represents the number of days it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

From December 31, 2020, to December 31, 2022, the cash conversion cycle fluctuated within a relatively narrow range between approximately 56 to 62 days. However, there was a significant improvement in efficiency observed from June 30, 2022, to December 31, 2024, as the cash conversion cycle decreased steadily from 43.12 days to 45.88 days. This suggests that Sylvamo Corp managed its working capital more effectively during this period.

The decrease in the cash conversion cycle indicates that Sylvamo Corp was able to reduce the time it takes to sell inventory, collect receivables, and pay its suppliers. A shorter cash conversion cycle typically signifies better liquidity, improved efficiency in operations, and potentially stronger cash flow generation.

Overall, the trend in Sylvamo Corp's cash conversion cycle indicates a positive development in the company's working capital management practices, leading to potentially enhanced financial performance and operational efficiency.