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.
Peer comparison
Dec 31, 2023