Olin Corporation (OLN)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,821,200 | 5,738,700 | 5,686,000 | 5,667,100 | 5,667,500 | 5,831,100 | 6,269,700 | 6,828,500 | 7,194,300 | 7,400,400 | 7,239,300 | 7,000,100 | 6,616,400 | 6,273,100 | 5,900,700 | 5,424,200 | 5,374,600 | 5,187,900 | 5,238,100 | 5,466,100 |
| Inventory | US$ in thousands | 823,500 | 827,700 | 872,900 | 823,900 | 858,800 | 977,700 | 1,081,200 | 1,089,900 | 941,900 | 945,100 | 945,700 | 909,200 | 868,300 | 826,800 | 736,500 | 679,500 | 674,700 | 608,400 | 619,100 | 667,500 |
| Inventory turnover | 7.07 | 6.93 | 6.51 | 6.88 | 6.60 | 5.96 | 5.80 | 6.27 | 7.64 | 7.83 | 7.65 | 7.70 | 7.62 | 7.59 | 8.01 | 7.98 | 7.97 | 8.53 | 8.46 | 8.19 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,821,200K ÷ $823,500K
= 7.07
The inventory turnover ratio for Olin Corporation has shown some fluctuations over the past few years. It ranged from a high of 8.53 in September 2020 to a low of 5.80 in June 2023. Generally, a higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.
However, the trend in Olin Corporation's inventory turnover ratio has declined since September 2020, indicating that the company may be taking longer to sell its inventory. This could potentially mean excess inventory levels or challenges in demand for the company's products.
It is essential for Olin Corporation to monitor and manage its inventory effectively to ensure optimal levels that align with customer demand. A lower inventory turnover ratio may tie up working capital and lead to increased storage costs, negatively impacting the company's overall financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024