Olin Corporation (OLN)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,802,600 | 5,831,100 | 7,194,300 | 6,616,400 | 5,374,600 |
| Inventory | US$ in thousands | 823,500 | 858,800 | 941,900 | 868,300 | 674,700 |
| Inventory turnover | 7.05 | 6.79 | 7.64 | 7.62 | 7.97 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,802,600K ÷ $823,500K
= 7.05
Based on the inventory turnover data for Olin Corporation from 2020 to 2024, the company's inventory turnover ratio has fluctuated within a relatively narrow range. In 2020, the inventory turnover ratio was 7.97 times, indicating that the company's inventory was sold and replaced nearly 8 times during the year. Over the next few years, the ratio slightly decreased to 7.62 in 2021 and 7.64 in 2022 before experiencing a more noticeable decline to 6.79 in 2023. However, there was a slight improvement in 2024 with the ratio increasing to 7.05.
Overall, the company's inventory turnover ratio demonstrates efficient management of inventory levels, with a generally stable turnover rate over the period analyzed. It suggests that Olin Corporation is effectively managing its inventory in relation to sales, although the slight decrease in 2023 may warrant further investigation to understand the factors contributing to this decline.
Peer comparison
Dec 31, 2024