Olin Corporation (OLN)
Total asset 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,694,800 | 7,037,300 | 7,697,800 | 8,622,000 | 9,248,600 | 9,480,800 | 9,472,500 | 9,030,900 | 8,436,700 | 7,905,800 | 6,991,400 | 6,022,700 | 5,550,200 | 5,283,200 | 5,432,700 | 5,796,000 | 5,940,900 | 6,188,800 | 8,361,600 | 10,222,500 |
| Total assets | US$ in thousands | 7,713,200 | 7,815,200 | 7,952,500 | 8,109,400 | 8,044,200 | 8,220,200 | 8,675,200 | 8,574,700 | 8,517,700 | 8,652,700 | 8,657,200 | 8,453,200 | 8,270,900 | 8,266,600 | 8,978,100 | 9,184,400 | 9,187,800 | 9,232,600 | 9,235,300 | 9,169,900 |
| Total asset turnover | 0.87 | 0.90 | 0.97 | 1.06 | 1.15 | 1.15 | 1.09 | 1.05 | 0.99 | 0.91 | 0.81 | 0.71 | 0.67 | 0.64 | 0.61 | 0.63 | 0.65 | 0.67 | 0.91 | 1.11 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $6,694,800K ÷ $7,713,200K
= 0.87
The total asset turnover ratio measures how efficiently a company is utilizing its total assets to generate revenue. In the case of Olin Corp., the total asset turnover ratio has been fluctuating over the past eight quarters.
In Q4 2023, the total asset turnover ratio was 0.89, indicating that for every dollar of total assets, Olin Corp. generated $0.89 in revenue. This ratio increased slightly in Q3 2023 to 0.92, but then started to decrease in the following quarters.
The ratio hit its peak in Q4 2022 at 1.17, showing that Olin Corp. was able to generate $1.17 in revenue for every dollar of total assets during that period. However, the ratio has been on a downward trend since then, reaching 1.10 in Q1 2022.
Overall, the declining trend in total asset turnover suggests that Olin Corp. may be becoming less efficient in generating revenue from its total assets. This could be a concern for investors and stakeholders as it may indicate potential inefficiencies in the company's operations or utilization of assets. Olin Corp. should closely monitor and take steps to improve its total asset turnover ratio to ensure sustained profitability and operational efficiency.
Peer comparison
Dec 31, 2023