Olin Corporation (OLN)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	737,500	6,833,000	2,181,900	2,294,200	383,400
Revenue	US$ in thousands	6,540,100	6,833,000	9,376,200	8,910,600	5,758,000
Gross profit margin		11.28%	100.00%	23.27%	25.75%	6.66%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $737,500K ÷ $6,540,100K
= 11.28%

The gross profit margin of Olin Corporation has shown significant fluctuations over the past five years. In December 31, 2020, the gross profit margin was relatively low at 6.66%, indicating that the company was generating only a small percentage of revenue after accounting for the cost of goods sold.

However, there was a substantial improvement in the gross profit margin by the end of December 31, 2021, where it increased to 25.75%, signaling a more efficient management of production costs relative to revenue. This improvement continued into December 31, 2022, with a gross profit margin of 23.27%, albeit slightly lower than the previous year.

Interestingly, the gross profit margin reached an exceptionally high level of 100.00% by December 31, 2023, which may be an anomaly or could reflect a unique event such as a one-time gain or a significant reduction in cost of goods sold. It would be prudent to further investigate the reasons behind this unusually high figure.

Subsequently, in December 31, 2024, the gross profit margin dropped to 11.28%, indicating a decrease in the company's ability to retain a proportion of revenue as gross profit. This decline may be attributed to various factors such as increased production costs, pricing pressures, or changes in product mix.

Overall, Olin Corporation's gross profit margin has exhibited volatility over the past five years, reflecting fluctuations in its operational efficiency and cost management practices. It is important for stakeholders to closely monitor these trends and assess the underlying factors influencing the company's profitability.