Sylvamo Corp (SLVM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 205,000 | 220,000 | 360,000 | 180,000 | 95,000 |
| Short-term investments | US$ in thousands | — | — | 360,000 | 180,000 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 682,000 | 695,000 | 728,000 | 758,000 | 490,000 |
| Quick ratio | 0.30 | 0.32 | 0.99 | 0.47 | 0.19 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($205,000K
+ $—K
+ $—K)
÷ $682,000K
= 0.30
Based on the quick ratio data provided for Sylvamo Corp, the company's ability to meet its short-term obligations has varied significantly over the last five years. The quick ratio, also known as the acid-test ratio, measures the company's ability to pay off its current liabilities using its most liquid assets.
In December 31, 2020, the quick ratio was exceptionally low at 0.19, indicating that Sylvamo Corp had a limited ability to cover its short-term liabilities with its quick assets alone. This could raise concerns about the company's liquidity and ability to meet immediate financial obligations.
However, by December 31, 2021, the quick ratio improved to 0.47, suggesting a better position compared to the previous year. The company showed an increase in its ability to cover its short-term liabilities with its quick assets.
The quick ratio continued to improve significantly by December 31, 2022, reaching a strong level of 0.99. This indicates that Sylvamo Corp had almost enough quick assets to cover its current liabilities, reflecting a healthier financial position and improved liquidity.
In December 31, 2023, there was a notable decrease in the quick ratio to 0.32, which may raise concerns about the company's ability to meet its short-term obligations. This decline could be attributed to changes in the composition of current assets or liabilities.
Finally, by December 31, 2024, the quick ratio remained low at 0.30, indicating a continuing challenge for the company in meeting its short-term obligations with its quick assets alone.
Overall, the fluctuation in Sylvamo Corp's quick ratio over the five-year period highlights the importance of monitoring liquidity levels and the composition of current assets to ensure the company's ability to meet its short-term financial obligations. Additional analysis of the underlying reasons for these fluctuations would be necessary to provide a more comprehensive assessment of the company's liquidity position.
Peer comparison
Dec 31, 2024