Olin Corporation (OLN)

Cash ratio

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
Cash and cash equivalents US$ in thousands 170,300 158,300 161,100 176,000 194,000 163,600 304,600 197,900 180,500 306,100 272,800 259,900 189,700 282,700 237,900 194,500 220,900 177,400 126,900 105,700
Short-term investments US$ in thousands 0 — — — 0 — — — 0 — — — 0 — — — 0 — — —
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
Cash ratio 0.11 0.11 0.12 0.12 0.12 0.10 0.16 0.12 0.11 0.19 0.20 0.21 0.16 0.27 0.26 0.12 0.20 0.16 0.12 0.09

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 ranged from 0.14 to 0.22 over the past eight quarters. A cash ratio of 0.15 indicates that for every dollar of current liabilities, Olin Corp. had $0.15 available in cash. This implies that the company's liquidity position has generally been moderate, with a slight decrease in cash availability in Q3 2023 compared to the previous quarter.

A higher cash ratio is generally preferred as it signifies a greater ability to cover short-term liabilities using cash on hand. However, a consistent cash ratio above 0.1 is considered satisfactory. Olin Corp. has mostly maintained its cash ratio within this range, indicating a reasonable ability to meet its short-term obligations with available cash reserves.

The decrease in the cash ratio in Q3 2023 compared to the previous quarters could indicate a potential decrease in liquid assets relative to current liabilities during that period. It would be essential for Olin Corp. to closely monitor its liquidity position to ensure it can meet its short-term financial obligations effectively.