Olin Corporation (OLN)
Payables 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 |
| Payables | US$ in thousands | 775,400 | 717,600 | 750,000 | 817,100 | 837,700 | 892,600 | 983,700 | 791,500 | 847,700 | 811,700 | 806,300 | 716,600 | 729,200 | 614,700 | 520,800 | 668,100 | 651,900 | 647,700 | 669,200 | 637,000 |
| Payables turnover | 7.96 | 8.84 | 9.03 | 8.94 | 9.08 | 8.75 | 7.78 | 9.38 | 8.31 | 8.13 | 8.61 | 9.00 | 8.77 | 10.10 | 10.66 | 8.69 | 8.88 | 9.13 | 8.96 | 9.45 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,173,700K ÷ $775,400K
= 7.96
The payables turnover ratio for Olin Corp. has shown fluctuations over the past eight quarters, ranging from 7.31 to 8.84. In Q4 2023, the payables turnover ratio was 7.31, indicating that the company paid its accounts payable approximately 7.31 times during the quarter. This ratio increased to 8.13 in Q3 2023 and further improved to 8.36 in Q2 2023 and then remained constant at 8.36 in Q1 2023.
Comparing these figures to the previous quarters, it is evident that the payables turnover ratio has experienced variability. It peaked at 8.59 in Q4 2022, dropped to 7.36 in Q2 2022, and then increased to 8.29 in Q3 2022 before reaching 8.84 in Q1 2022.
Overall, a higher payables turnover ratio suggests that the company is efficient in paying its suppliers and managing its accounts payable. The variations in the ratio over the quarters may indicate changes in the company's payment policies, supplier relationships, or overall operational efficiency. It would be important to analyze the underlying reasons for these fluctuations to gain a deeper understanding of Olin Corp.'s financial performance and management of its payables.
Peer comparison
Dec 31, 2023