Olin Corporation (OLN)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 175,600 170,300 194,000 180,500 189,700
Short-term investments US$ in thousands — — — — —
Total current liabilities US$ in thousands 1,632,200 1,528,200 1,561,400 1,682,100 1,196,900
Cash ratio 0.11 0.11 0.12 0.11 0.16

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($175,600K + $—K) ÷ $1,632,200K
= 0.11

The cash ratio of Olin Corporation has been relatively stable over the past five years, ranging from 0.11 to 0.16. This ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A decreasing trend in the cash ratio may signal a lower liquidity position, while an increasing trend could suggest improved liquidity. Olin Corporation's cash ratio of 0.11 in December 31, 2021, 2023, and 2024 highlights that the company may have a lower level of cash to meet its short-term obligations. Monitoring this ratio in conjunction with other liquidity ratios can provide a more comprehensive view of the company's financial health and its ability to efficiently manage its cash resources.