Olin Corporation (OLN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,721,800 | 9,261,600 | 8,413,200 | 5,465,300 | 5,877,300 |
| Receivables | US$ in thousands | 15,300 | 43,200 | 300 | 15,100 | 760,400 |
| Receivables turnover | 439.33 | 214.39 | 28,044.00 | 361.94 | 7.73 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,721,800K ÷ $15,300K
= 439.33
The receivables turnover ratio for Olin Corp. has fluctuated over the past five years, ranging from 7.33 to 9.69. The ratio measures how efficiently the company is able to collect outstanding receivables from customers during a specific period. A higher turnover ratio typically indicates that the company is able to collect its accounts receivable more quickly.
In 2023, Olin Corp.'s receivables turnover ratio decreased to 7.68 from 9.69 in 2022, suggesting a potential slowdown in the collection of receivables compared to the previous year. Despite the decrease, the ratio remains relatively healthy and indicates that the company is still efficient in collecting its receivables.
Comparing the 2023 ratio to previous years, Olin Corp.'s receivables turnover in 2023 is lower than in 2022 but higher than in 2020 and 2019. This suggests that the company's ability to collect receivables in 2023 was generally stronger than in those earlier years, but there may have been some challenges compared to the immediate prior year.
Overall, while the receivables turnover ratio for Olin Corp. fluctuated over the years, it indicates that the company is effective in managing its accounts receivable and collecting payments from customers in a timely manner. However, it would be beneficial for the company to further investigate the reasons behind the decrease in the ratio in 2023 to ensure efficient cash flow management and liquidity.
Peer comparison
Dec 31, 2023