Olin Corporation (OLN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.28% | 100.00% | 23.27% | 25.75% | 6.66% |
| Operating profit margin | 4.53% | 0.63% | 18.97% | 20.77% | -0.32% |
| Pretax margin | 2.17% | 8.19% | 17.88% | 17.27% | -17.71% |
| Net profit margin | 1.66% | 6.73% | 14.15% | 14.55% | -16.84% |
Olin Corporation's profitability ratios have shown fluctuations over the years. The gross profit margin improved significantly from 6.66% in December 31, 2020, to 100.00% in December 31, 2023, before dropping to 11.28% by December 31, 2024. This indicates fluctuations in the company's ability to control production costs and generate profits from sales.
The operating profit margin also exhibited variability, with a negative figure of -0.32% in December 31, 2020, rising to 20.77% in December 31, 2021, before decreasing to 4.53% by December 31, 2024. This suggests fluctuations in the company's efficiency in managing operating expenses to generate profits.
Similarly, the pretax margin and net profit margin metrics have shown fluctuations. The pretax margin improved from -17.71% in December 31, 2020, to 17.88% in December 31, 2022, before declining to 2.17% by December 31, 2024. The net profit margin also followed a similar trend, increasing from -16.84% in December 31, 2020, to 14.55% in December 31, 2021, before dropping to 1.66% by December 31, 2024.
Overall, Olin Corporation's profitability ratios indicate fluctuating levels of profitability over the years, with improvements in certain periods followed by declines in others. This highlights the importance of closely monitoring the company's operations and cost management strategies to enhance its overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.91% | 0.56% | 22.12% | 21.73% | -0.22% |
| Return on assets (ROA) | 1.43% | 5.97% | 16.50% | 15.22% | -11.73% |
| Return on total capital | 15.87% | 1.92% | 71.55% | 65.33% | -50.11% |
| Return on equity (ROE) | 5.28% | 20.61% | 52.17% | 48.89% | -66.78% |
The profitability ratios of Olin Corporation have shown a significant improvement and volatility over the years.
1. Operating return on assets (Operating ROA) increased from -0.22% in December 2020 to a high of 22.12% in December 2022 before declining to 3.91% in December 2024. This indicates that the company's operating performance in generating profits from its assets improved notably during the period.
2. Return on assets (ROA) also displayed an upward trend, rising from -11.73% in December 2020 to 16.50% in December 2022, before decreasing to 1.43% in December 2024. This ratio reflects the overall efficiency of the company in utilizing its assets to generate profits.
3. Return on total capital demonstrated a similar pattern, with a significant improvement from -50.11% in December 2020 to 71.55% in December 2022, before dropping to 15.87% in December 2024. This ratio shows how effectively the company is utilizing both equity and debt capital to generate returns.
4. Return on equity (ROE) exhibited a mixed trend, increasing from -66.78% in December 2020 to 52.17% in December 2022, before declining to 5.28% in December 2024. ROE reflects the return earned on shareholders' equity investments in the company.
Overall, Olin Corporation's profitability ratios indicate varying levels of performance and efficiency in generating returns for its investors and shareholders over the years. The company experienced growth and fluctuations in profitability, highlighting the importance of closely monitoring these metrics to assess its financial health and performance.