Olin Corporation (OLN)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 559,300 | 1,676,000 | 1,538,700 | -1,020,000 | -36,900 |
| Revenue | US$ in thousands | 6,721,800 | 9,261,600 | 8,413,200 | 5,465,300 | 5,877,300 |
| Pretax margin | 8.32% | 18.10% | 18.29% | -18.66% | -0.63% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $559,300K ÷ $6,721,800K
= 8.32%
The pretax margin of Olin Corp. has fluctuated over the past five years. In 2023, the pretax margin stood at 8.19%, representing a decrease from the prior year. Despite this decrease, the company's pretax margin in 2023 remains positive, indicating that the company generated earnings before taxes relative to its total revenue.
In 2022, Olin Corp. demonstrated a strong performance with a pretax margin of 17.88%, showing a significant increase compared to 2021. This improvement suggests that the company effectively managed its costs and expenses in relation to its revenue, resulting in higher profitability.
Similarly, in 2021, Olin Corp. maintained a relatively high pretax margin of 17.27%, indicating consistent profitability. This performance may reflect successful strategic initiatives and effective financial management by the company during that period.
On the contrary, in 2020, Olin Corp. experienced a negative pretax margin of -17.71%, which raises concerns about its financial health and operational efficiency. A negative pretax margin implies that the company incurred losses before accounting for taxes, signaling potential challenges such as high costs or declining revenues during that period.
In 2019, Olin Corp. also recorded a slightly negative pretax margin of -0.60%, suggesting some financial strain or inefficiencies in its operations. This performance may have been influenced by external factors or internal issues impacting the company's profitability.
Overall, the trend in Olin Corp.'s pretax margin highlights the company's ability to generate profits before taxes over the years, with fluctuations indicating varying levels of financial performance and operational efficiency. It is crucial for the company to continue monitoring and improving its pretax margin to sustain profitability and long-term success.
Peer comparison
Dec 31, 2023