Olin Corporation (OLN)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 7.05 6.79 7.64 7.62 7.97
DOH days 51.80 53.76 47.79 47.90 45.82

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.05
= 51.80

To analyze Olin Corporation's Days of Inventory on Hand (DOH) over the period from December 31, 2020, to December 31, 2024, we observe a gradual increase in the number of days it takes for the company to sell its inventory.

- In December 2020, the DOH stood at 45.82 days, indicating that, on average, Olin Corporation had enough inventory to cover approximately 45.82 days of sales.
- By the end of December 2021, the DOH increased slightly to 47.90 days, suggesting a marginal increase in the time it takes to sell inventory.
- In December 2022, the DOH remained relatively stable at 47.79 days, indicating a consistent trend in managing inventory levels.
- However, there was a noticeable increase in the DOH by the end of December 2023, rising to 53.76 days, which may suggest inventory management challenges or a slower inventory turnover rate.
- Subsequently, by December 31, 2024, the DOH decreased to 51.80 days, indicating a slight improvement but remaining elevated compared to earlier years.

Overall, the increasing trend in DOH from 2020 to 2023 followed by a slight decrease in 2024 suggests that Olin Corporation may have faced challenges in efficiently managing its inventory levels, which can impact working capital and operational efficiency. Further analysis of underlying factors affecting inventory management would be beneficial to address any potential issues and optimize inventory turnover ratios.