Olin Corporation (OLN)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands 141,700 559,300 1,676,000 1,538,700 -1,020,000
Revenue US$ in thousands 6,540,100 6,833,000 9,376,200 8,910,600 5,758,000
Pretax margin 2.17% 8.19% 17.88% 17.27% -17.71%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $141,700K ÷ $6,540,100K
= 2.17%

Over the past five years, Olin Corporation's pretax margin has displayed significant fluctuations. The pretax margin was negative at -17.71% in December 2020, indicating challenges in generating profits before taxes. However, the company improved significantly in the following years, with pretax margins of 17.27% in December 2021 and further increasing to 17.88% in December 2022. This improvement suggests enhanced operational efficiency and cost management.

In December 2023, the pretax margin declined to 8.19%, signaling potential challenges or increased expenses impacting profitability. This was followed by a substantial decrease to 2.17% in December 2024, indicating a further decline in profit generation efficiency.

Overall, while Olin Corporation demonstrated notable improvements in profitability between 2020 and 2022, the subsequent decrease in pretax margins in 2023 and 2024 raises concerns about the company's ability to maintain consistent profitability levels in the face of changing economic conditions or operational challenges.