Olin Corporation (OLN)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.80 | 53.76 | 47.79 | 47.90 | 45.82 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 51.80 | 53.76 | 47.79 | 47.90 | 45.82 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.80 + — – —
= 51.80
The cash conversion cycle for Olin Corporation has shown a slight increase over the years, rising from 45.82 days at the end of 2020 to 51.80 days at the end of 2024. This indicates that the company's management of cash flows from its operating cycle has become less efficient over time.
A longer cash conversion cycle suggests that Olin Corporation is taking longer to convert its investments in inventory into cash from sales. This could indicate issues with inventory management, collection of receivables, or delays in settling payables.
It would be advisable for Olin Corporation to focus on improving its inventory turnover, collection processes, and payment terms with suppliers to shorten its cash conversion cycle and enhance its overall liquidity position.
Peer comparison
Dec 31, 2024