Olin Corporation (OLN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 170,300 | 194,000 | 180,500 | 189,700 | 220,900 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 0 | 0 |
| Total current liabilities | US$ in thousands | 1,528,200 | 1,561,400 | 1,682,100 | 1,198,900 | 1,082,200 |
| Cash ratio | 0.11 | 0.12 | 0.11 | 0.16 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($170,300K
+ $0K)
÷ $1,528,200K
= 0.11
The cash ratio of Olin Corp. has exhibited a declining trend over the past five years, decreasing from 0.23 in 2019 to 0.15 in 2023. The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.
The decreasing trend in Olin Corp.'s cash ratio may suggest a potential liquidity challenge or a change in the company's cash management strategies. A cash ratio of 0.15 in 2023 indicates that the company's cash and cash equivalents may cover only 15% of its current liabilities, which could raise concerns about its short-term liquidity position.
Investors and stakeholders may monitor Olin Corp.'s cash ratio closely to assess its ability to manage short-term obligations effectively and sustain its operations without facing liquidity constraints. Further analysis of the company's cash flow management and liquidity position would provide more insight into its financial health and operational efficiency.
Peer comparison
Dec 31, 2023