Olin Corporation (OLN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 170,300 | 194,000 | 180,500 | 189,700 | 220,900 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 0 | 0 |
| Receivables | US$ in thousands | 15,300 | 43,200 | 300 | 15,100 | 760,400 |
| Total current liabilities | US$ in thousands | 1,528,200 | 1,561,400 | 1,682,100 | 1,198,900 | 1,082,200 |
| Quick ratio | 0.12 | 0.15 | 0.11 | 0.17 | 0.91 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($170,300K
+ $0K
+ $15,300K)
÷ $1,528,200K
= 0.12
The quick ratio of Olin Corp. has shown a decreasing trend over the past five years, from 0.94 in 2019 to 0.73 in 2023. This indicates a decline in the company's ability to meet its short-term obligations with its most liquid assets.
A quick ratio below 1.0 suggests that the company may have difficulty in covering its current liabilities with its quick assets alone. Olin Corp.'s quick ratio has been consistently below 1.0, indicating a potential liquidity risk.
The gradual decrease in the quick ratio over the years may signal that the company's liquidity position has weakened. This trend could raise concerns about Olin Corp.'s ability to meet its short-term financial obligations without relying on additional financing or selling off non-liquid assets.
Overall, the declining quick ratio of Olin Corp. highlights the importance of monitoring the company's liquidity position and analyzing its ability to manage short-term obligations effectively.
Peer comparison
Dec 31, 2023