Olin Corporation (OLN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,173,700 | 7,603,800 | 7,046,000 | 6,516,800 | 5,980,700 |
| Inventory | US$ in thousands | 858,800 | 941,900 | 868,300 | 674,700 | 695,700 |
| Inventory turnover | 7.19 | 8.07 | 8.11 | 9.66 | 8.60 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,173,700K ÷ $858,800K
= 7.19
Olin Corp.'s inventory turnover has exhibited some fluctuations over the past five years. The trend shows that the company's inventory turnover was highest in 2020 at 7.97 times and lowest in 2023 at 6.60 times. Despite the fluctuations, Olin Corp. has generally maintained a relatively stable inventory turnover ratio, indicating that the company efficiently manages its inventory levels. A higher inventory turnover ratio indicates that the company is selling its products quickly and efficiently, which can help reduce carrying costs and improve cash flow. However, a decreasing trend in inventory turnover may warrant further investigation to identify potential issues with inventory management or changing market demand. Overall, Olin Corp.'s inventory turnover performance suggests effective inventory management practices but may benefit from continued monitoring and analysis.
Peer comparison
Dec 31, 2023