Olin Corporation (OLN)
Total asset 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 |
| Total assets | US$ in thousands | 7,713,200 | 8,044,200 | 8,517,700 | 8,270,900 | 9,187,800 |
| Total asset turnover | 0.87 | 1.15 | 0.99 | 0.66 | 0.64 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,721,800K ÷ $7,713,200K
= 0.87
The trend analysis of Olin Corp.'s total asset turnover over the past five years reveals fluctuations in the efficiency with which the company utilizes its assets to generate revenue. In 2023, the total asset turnover ratio decreased to 0.89 from 1.17 in 2022, indicating a decline in the company's ability to generate sales relative to its asset base. This could suggest potential inefficiencies in asset utilization or a decrease in sales volume compared to the previous year.
Comparing the current ratio to that of 2021, where it stood at 1.05, we observe a further deterioration in asset turnover efficiency. However, it is worth noting that the asset turnover in 2023 remained higher than the ratios reported in 2020 (0.70) and 2019 (0.67), signifying an improvement in asset utilization efficiency over those years.
The declining trend in total asset turnover from 2022 to 2023 warrants a closer examination of the factors contributing to this decrease. It is essential for stakeholders to delve deeper into the company's operations, sales strategies, and asset management practices to identify areas for improvement and enhance asset turnover in the future.
Peer comparison
Dec 31, 2023