Olin Corporation (OLN)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 712,100 886,700 1,114,200 1,462,900 1,779,000 2,031,000 2,186,500 2,016,100 1,850,800 1,405,600 172,800 -318,000 -746,700 -876,400 -89,200 35,100 177,800 353,900 565,000 687,200
Total assets US$ in thousands 7,713,200 7,815,200 7,952,500 8,109,400 8,044,200 8,220,200 8,675,200 8,574,700 8,517,700 8,652,700 8,657,200 8,453,200 8,270,900 8,266,600 8,978,100 9,184,400 9,187,800 9,232,600 9,235,300 9,169,900
Operating ROA 9.23% 11.35% 14.01% 18.04% 22.12% 24.71% 25.20% 23.51% 21.73% 16.24% 2.00% -3.76% -9.03% -10.60% -0.99% 0.38% 1.94% 3.83% 6.12% 7.49%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $712,100K ÷ $7,713,200K
= 9.23%

Based on the quarterly data provided for Olin Corp.'s operating return on assets (operating ROA), we observe a declining trend in the operating ROA over the past eight quarters. The operating ROA has decreased from 23.78% in Q1 2022 to 9.84% in Q4 2023. This signifies a substantial reduction in the company's ability to generate operating income relative to its total assets.

The operating ROA peaked at 25.31% in Q2 2022 and has been on a downward trajectory since then. The decreasing trend in operating ROA could indicate challenges in efficiently utilizing the company's assets to generate operating income, potentially pointing towards inefficiencies in operations or changes in the business environment impacting profitability.

It is essential for Olin Corp. to closely monitor and address the factors contributing to the decline in operating ROA to enhance operational efficiency and profitability in the future. Continuous evaluation of the company's asset utilization and operational performance will be crucial to improving its financial performance and sustaining a competitive position in the market.