Olin Corporation (OLN)

Short-term

Turnover ratios

Inventory turnover measures how efficiently a company is managing its inventory. Olin Corporation's inventory turnover has been relatively stable, ranging from 5.80 to 8.53 over the past five years. A decreasing trend in inventory turnover may indicate inefficiencies in managing inventory levels or slow-moving inventory.

Receivables turnover, which reflects how quickly a company collects payments from its customers, is not available for Olin Corporation for the period analyzed. This suggests that the company may not have significant credit sales or that information on receivables turnover is not provided in the data.

Payables turnover, representing how quickly a company pays its suppliers, is also not available for Olin Corporation in the data provided. This ratio is important as it shows how efficiently a company manages its accounts payable and liquidity.

Working capital turnover, a measure of how effectively a company is using its working capital to generate revenue, has been fluctuating for Olin Corporation, ranging from 7.87 to 15.76. A higher turnover ratio indicates better efficiency in utilizing working capital to generate sales. The company has shown some fluctuations in this ratio, suggesting changes in working capital management over the years.

Overall, while inventory turnover for Olin Corporation has remained stable, the lack of data on receivables and payables turnover limits a comprehensive analysis of the company's activity ratios. Fluctuations in working capital turnover indicate some variability in the efficiency of working capital utilization for revenue generation.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Olin Corporation as follows:

1. Days of Inventory on Hand (DOH):
- Olin Corporation's DOH has shown some fluctuations over the periods analyzed, ranging from a low of 42.80 days to a high of 62.94 days. Generally, a lower DOH indicates better inventory management efficiency as it means the company is able to sell its inventory more quickly. Olin Corporation experienced an increase in DOH towards the end of the period, suggesting a potential issue with managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data available for Olin Corporation's DSO, which makes it difficult to assess the efficiency of the company in collecting accounts receivable. DSO measures how long it takes for the company to collect payment after making a sale. A lower DSO is preferable as it indicates quicker collection of receivables, improving cash flow.

3. Number of Days of Payables:
- Similar to DSO, there is a lack of information on Olin Corporation's days of payables, making it challenging to evaluate the company's payment practices with suppliers. A longer period of payables suggests the company is taking longer to pay its bills, which can sometimes be indicative of financial difficulties or strained relationships with suppliers.

In conclusion, the analysis of Olin Corporation's activity ratios highlights some potential concerns regarding inventory management efficiency and the company's ability to collect receivables and manage payables. Further information on DSO and payables would provide a more complete picture of Olin Corporation's overall operational efficiency.

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Long-term

Olin Corporation's long-term activity ratios can provide insights into how efficiently the company is utilizing its assets to generate sales.

1. Fixed Asset Turnover: This ratio measures how effectively a company is generating sales from its fixed assets. Olin Corporation has shown an increasing trend in its fixed asset turnover over the years, with the ratio steadily rising from 1.82 in March 2020 to a peak of 3.57 in June 2022. A higher fixed asset turnover indicates that the company is utilizing its fixed assets more efficiently to generate sales.

2. Total Asset Turnover: This ratio reflects the company's ability to generate sales from all its assets. Olin Corporation's total asset turnover has also demonstrated an upward trajectory, increasing from 0.65 in March 2020 to 1.17 in December 2022 before experiencing a slight decline to 0.86 in December 2024. The increasing trend in total asset turnover signifies that the company is effectively utilizing its total assets to drive sales.

Overall, the improving trends in both fixed asset turnover and total asset turnover for Olin Corporation suggest that the company is becoming more efficient in utilizing its assets to generate revenue. However, the declining total asset turnover in the most recent period may warrant further investigation to understand the factors affecting the company's asset turnover efficiency.