Olin Corporation (OLN)
Working capital 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 current assets | US$ in thousands | 1,973,200 | 2,156,400 | 2,248,300 | 1,717,100 | 1,714,000 |
| Total current liabilities | US$ in thousands | 1,528,200 | 1,561,400 | 1,682,100 | 1,198,900 | 1,082,200 |
| Working capital turnover | 15.11 | 15.57 | 14.86 | 10.55 | 9.30 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,721,800K ÷ ($1,973,200K – $1,528,200K)
= 15.11
The working capital turnover ratio for Olin Corp. has shown a consistent increasing trend over the past five years, demonstrating the company's efficiency in utilizing its working capital to generate sales.
The ratio increased from 9.67 in 2019 to 15.36 in 2023, indicating a significant improvement in the company's ability to efficiently convert its working capital into revenue. This suggests that Olin Corp. has been able to effectively manage its current assets and liabilities to support its business operations and sales growth.
The steady increase in the working capital turnover ratio reflects positively on Olin Corp.'s operational efficiency and liquidity management. It shows that the company has been able to optimize its working capital resources to drive sales and support its business activities effectively.
Overall, the upward trend in the working capital turnover ratio for Olin Corp. indicates a strong financial position and efficient utilization of working capital, which bodes well for the company's ability to sustain and potentially enhance its performance in the future.
Peer comparison
Dec 31, 2023