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.
Peer comparison
Dec 31, 2023