Sylvamo Corp (SLVM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 111,000 | 280,000 | 95,000 |
| Short-term investments | US$ in thousands | 109,000 | 80,000 | 64,000 |
| Receivables | US$ in thousands | 428,000 | 450,000 | 402,000 |
| Total current liabilities | US$ in thousands | 695,000 | 728,000 | 758,000 |
| Quick ratio | 0.93 | 1.11 | 0.74 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($111,000K
+ $109,000K
+ $428,000K)
÷ $695,000K
= 0.93
The quick ratio of Sylvamo Corp has exhibited some fluctuations over the past four years. The ratio indicates the company's ability to meet its short-term obligations using its most liquid assets.
In 2023, the quick ratio was 1.05, which suggests that Sylvamo Corp may have slightly decreased liquidity compared to 2022 when the quick ratio was 1.21. This implies that the company may have fewer liquid assets available to cover its current liabilities.
The quick ratio of 1.05 in 2023 is slightly above 1, indicating that Sylvamo Corp still has an adequate level of liquid assets to cover its short-term obligations. However, the decreasing trend from 2022 to 2023 should be monitored closely to ensure the company maintains a healthy liquidity position.
Comparing the quick ratio over the past four years, the highest ratio was recorded in 2020 at 1.59, suggesting that Sylvamo Corp had a higher level of liquidity to meet its short-term obligations at that time. The lowest quick ratio was observed in 2021 at 1.01, indicating a potential liquidity concern that the company may have experienced during that period.
Overall, while Sylvamo Corp's quick ratio in 2023 is still above the ideal threshold of 1, the decreasing trend over the past two years warrants further investigation to ensure the company's liquidity position remains stable and sufficient to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023