Olin Corporation (OLN)

Quick 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 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 — — —
Receivables US$ in thousands 15,300 28,000 32,800 29,700 43,200 26,000 8,000 1,200 300 3,000 62,400 13,400 15,100 22,000 17,600 19,900 760,400 849,900 848,200 808,300
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
Quick ratio 0.12 0.13 0.14 0.14 0.15 0.12 0.17 0.12 0.11 0.19 0.25 0.22 0.17 0.29 0.28 0.14 0.91 0.95 0.93 0.80

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 fluctuated over the past eight quarters, ranging from a low of 0.73 to a high of 0.94. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its current obligations without selling inventory or obtaining additional financing.

Olin Corp.'s quick ratio has generally been below 1, suggesting a potential liquidity risk. The ratio has shown some improvement in the most recent quarters, increasing from 0.78 to 0.84. However, the ratio remains relatively low compared to historical levels, indicating that the company may still have challenges in meeting its short-term financial obligations.

It is important for investors and stakeholders to monitor Olin Corp.'s quick ratio closely to assess the company's liquidity position and financial health. A sustained improvement in the quick ratio over time would be a positive indicator of the company's ability to manage its short-term obligations effectively.