Olin Corporation (OLN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,973,200 | 2,156,400 | 2,248,300 | 1,717,100 | 1,714,000 |
| Total current liabilities | US$ in thousands | 1,528,200 | 1,561,400 | 1,682,100 | 1,198,900 | 1,082,200 |
| Current ratio | 1.29 | 1.38 | 1.34 | 1.43 | 1.58 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,973,200K ÷ $1,528,200K
= 1.29
The current ratio of Olin Corp. has shown a declining trend over the past five years, decreasing from 1.58 in 2019 to 1.29 in 2023. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign.
However, the decreasing trend in the current ratio may raise concerns about Olin Corp.'s liquidity position. A lower current ratio suggests that the company may have difficulty covering its short-term obligations. It is important for investors and creditors to closely monitor this ratio to ensure that the company can effectively manage its short-term financial obligations.
Further analysis of the components of current assets and current liabilities would provide insights into the factors contributing to the decline in the current ratio. Overall, the decreasing trend in Olin Corp.'s current ratio warrants attention and may signal a need for the company to improve its liquidity management in the future.
Peer comparison
Dec 31, 2023