Olin Corporation (OLN)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 296,500 42,900 1,779,000 1,850,800 -18,500
Total assets US$ in thousands 7,579,100 7,713,200 8,044,200 8,517,700 8,270,900
Operating ROA 3.91% 0.56% 22.12% 21.73% -0.22%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $296,500K ÷ $7,579,100K
= 3.91%

Operating ROA, which measures a company's ability to generate profits from its operational assets, is a critical financial metric for assessing Olin Corporation's operational efficiency over the years.

In 2020, Olin had a negative operating ROA of -0.22%, indicating that the company was not effectively utilizing its operational assets to generate profits. However, there was a significant improvement in 2021, with the operating ROA surging to 21.73%, demonstrating a strong performance and efficient utilization of assets.

The trend continued positively in 2022, with the operating ROA further increasing to 22.12%, indicating sustained operational effectiveness and profitability. However, in 2023, there was a slight decline in the operating ROA to 0.56%, which could signal potential challenges in optimizing asset utilization.

By 2024, Olin managed to improve the operating ROA to 3.91%, showing a recovery from the dip in 2023. Overall, the fluctuating trend in operating ROA suggests that Olin Corporation has made efforts to enhance operational efficiency and profitability over the years, with room for further improvement to ensure sustained profitability and asset utilization in the future.