Olin Corporation (OLN)
Working capital 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 current assets | US$ in thousands | 1,973,200 | 2,101,000 | 2,198,200 | 2,298,200 | 2,156,400 | 2,285,000 | 2,666,500 | 2,438,400 | 2,248,300 | 2,305,300 | 2,218,100 | 2,013,000 | 1,717,100 | 1,672,500 | 1,616,800 | 1,739,300 | 1,714,000 | 1,769,600 | 1,726,200 | 1,684,500 |
| Total current liabilities | US$ in thousands | 1,528,200 | 1,397,300 | 1,395,700 | 1,435,100 | 1,561,400 | 1,618,700 | 1,856,600 | 1,635,100 | 1,682,100 | 1,587,000 | 1,345,700 | 1,218,200 | 1,198,900 | 1,042,100 | 926,300 | 1,565,900 | 1,082,200 | 1,077,200 | 1,050,100 | 1,139,900 |
| Working capital turnover | 15.04 | 10.00 | 9.59 | 9.99 | 15.54 | 14.23 | 11.70 | 11.24 | 14.90 | 11.01 | 8.01 | 7.58 | 10.71 | 8.38 | 7.87 | 33.43 | 9.40 | 8.94 | 12.37 | 18.77 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,694,800K ÷ ($1,973,200K – $1,528,200K)
= 15.04
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. Olin Corp.'s working capital turnover ratio has shown some fluctuation over the past eight quarters. In Q4 2023, the working capital turnover ratio was 15.36, indicating that Olin Corp. generated $15.36 in revenue for every dollar of working capital invested during that quarter. This was a significant increase from the previous quarter (Q3 2023) where the ratio was 10.23.
While the working capital turnover ratio has shown variability, it generally remained above 10 over the past two years, indicating that Olin Corp. has been able to efficiently utilize its working capital to generate revenue consistently. The peak level was observed in Q4 2022 at 15.76, while the lowest was in Q2 2023 at 9.78.
Overall, Olin Corp.'s working capital turnover ratio has demonstrated strong performance, with occasional fluctuations, suggesting effective management of working capital to support revenue generation. Further analysis of the company's working capital components and operational efficiency could provide additional insights into its financial performance and liquidity management.
Peer comparison
Dec 31, 2023