Olin Corporation (OLN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,721,800 | 9,261,600 | 8,413,200 | 5,465,300 | 5,877,300 |
| Property, plant and equipment | US$ in thousands | 2,519,600 | 2,674,100 | 2,913,600 | 3,171,000 | 3,323,800 |
| Fixed asset turnover | 2.67 | 3.46 | 2.89 | 1.72 | 1.77 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,721,800K ÷ $2,519,600K
= 2.67
The fixed asset turnover ratio for Olin Corp. has shown fluctuations over the past five years. The ratio was at its highest in 2022 at 3.51, indicating that the company generated $3.51 in sales for every dollar invested in fixed assets during that year.
However, in 2023, the fixed asset turnover decreased to 2.71, suggesting that Olin Corp. generated $2.71 in sales for every dollar invested in fixed assets. This decrease in the ratio may indicate either a decrease in sales relative to fixed assets or an increase in the value of fixed assets without a corresponding increase in sales.
Compared to the previous years, the fixed asset turnover ratio in 2023 is lower than in 2022 but higher than in 2021 and the two preceding years, reflecting fluctuating efficiency in utilizing fixed assets to generate sales.
It is essential for Olin Corp. to further analyze the reasons behind this fluctuation in the fixed asset turnover ratio to identify areas for improvement in asset utilization and potentially increase profitability.
Peer comparison
Dec 31, 2023