Olin Corporation (OLN)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,173,700 | 6,343,300 | 6,775,900 | 7,304,800 | 7,603,800 | 7,806,000 | 7,652,300 | 7,426,100 | 7,046,000 | 6,596,400 | 6,940,200 | 6,452,400 | 6,396,400 | 6,209,700 | 5,554,300 | 5,806,000 | 5,791,900 | 5,912,300 | 5,998,600 | 6,019,200 |
| Inventory | US$ in thousands | 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 | 695,700 | 700,700 | 698,900 | 717,500 |
| Inventory turnover | 7.19 | 6.49 | 6.27 | 6.70 | 8.07 | 8.26 | 8.09 | 8.17 | 8.11 | 7.98 | 9.42 | 9.50 | 9.48 | 10.21 | 8.97 | 8.70 | 8.33 | 8.44 | 8.58 | 8.39 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,173,700K ÷ $858,800K
= 7.19
Olin Corp.'s inventory turnover has exhibited variability over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by showing how many times within a year the company's inventory is sold and replaced.
The trend in the inventory turnover ratio shows a decreasing pattern from Q4 2022 to Q2 2023, with a minor uptick in Q4 2023. This indicates a slower rate at which Olin Corp. is selling and replenishing its inventory over this period.
While a high inventory turnover ratio typically signifies efficient inventory management, the ratios for Olin Corp. have ranged from 5.80 to 7.83 over the past eight quarters, indicating moderate to relatively efficient levels. A higher inventory turnover ratio is usually preferable as it suggests faster sales and inventory replenishment cycles.
It is worth noting that the drop in inventory turnover from Q4 2022 to Q2 2023 could indicate potential challenges in sales growth or inventory management during that period. Further analysis would be required to identify the specific factors influencing the fluctuations in inventory turnover and assess their impact on Olin Corp.'s overall operational performance and financial health.
Peer comparison
Dec 31, 2023
Dec 31, 2023