Olin Corporation (OLN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.15% | 17.90% | 16.25% | -19.24% | -1.76% |
| Operating profit margin | 10.59% | 19.21% | 22.00% | -13.66% | 3.03% |
| Pretax margin | 8.32% | 18.10% | 18.29% | -18.66% | -0.63% |
| Net profit margin | 6.72% | 14.33% | 15.41% | -17.75% | -0.19% |
Olin Corp.'s profitability ratios have shown fluctuations over the past five years.
1. Gross Profit Margin: A key indicator of a company's ability to generate revenue after accounting for the cost of goods sold. Olin Corp.'s gross profit margin has varied significantly, with a notable decrease from 25.75% in 2021 to 17.06% in 2023.
2. Operating Profit Margin: This ratio reflects the efficiency of the company's operations in generating profit before interest and taxes. Olin Corp.'s operating profit margin has also experienced fluctuation, declining from 21.07% in 2021 to 11.10% in 2023.
3. Pretax Margin: Indicates the company's profitability after accounting for all operating expenses but before taxes. Olin Corp.'s pretax margin has shown a mixed performance, with a drastic improvement from -17.71% in 2020 to 8.19% in 2023.
4. Net Profit Margin: Reflects the company's bottom-line profitability after all expenses have been deducted. Olin Corp.'s net profit margin has displayed variability, ranging from -16.84% in 2020 to 6.73% in 2023.
Overall, Olin Corp. has faced challenges in maintaining consistent profitability over the past five years, as indicated by the fluctuations in its profitability ratios. Analyzing the reasons behind these fluctuations and identifying opportunities for improvement in operational efficiency and cost management could be crucial for enhancing the company's profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.23% | 22.12% | 21.73% | -9.03% | 1.94% |
| Return on assets (ROA) | 5.86% | 16.50% | 15.22% | -11.73% | -0.12% |
| Return on total capital | 15.35% | 35.58% | 36.07% | -13.75% | 3.58% |
| Return on equity (ROE) | 20.25% | 52.17% | 48.89% | -66.85% | -0.47% |
Olin Corp.'s profitability ratios show mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated, decreasing from 22.04% in 2021 to 9.84% in 2023. This ratio measures the company's operating efficiency in generating profits from its assets.
2. Return on assets (ROA) has also varied significantly, with a notable improvement from -11.73% in 2020 to 5.94% in 2023. ROA reflects the company's overall profitability in relation to its total assets.
3. Return on total capital has shown a volatile trend, with a substantial increase from -0.73% in 2020 to 15.48% in 2023. This ratio assesses the company's ability to generate returns from both equity and debt capital.
4. Return on equity (ROE) has been inconsistent, with a significant positive improvement from -66.85% in 2020 to 20.61% in 2023. ROE indicates the profitability of the company from the perspective of its shareholders.
Overall, while Olin Corp. has exhibited improvements in some profitability ratios over the years, there have been fluctuations in performance which may indicate changing business conditions or management strategies. Monitoring these ratios will be crucial to understanding the company's profitability trends and evaluating its financial health.