Olin Corporation (OLN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 7.78% | 9.86% | 11.98% | 15.28% | 17.78% | 17.67% | 19.22% | 17.77% | 16.48% | 16.56% | 0.73% | -7.13% | -15.25% | -17.54% | -2.24% | -0.17% | 2.51% | 4.47% | 28.26% | 41.12% |
| Operating profit margin | 10.64% | 12.60% | 14.47% | 16.97% | 19.24% | 21.42% | 23.08% | 22.32% | 21.94% | 17.78% | 2.47% | -5.28% | -13.45% | -16.59% | -1.64% | 0.61% | 2.99% | 5.72% | 6.76% | 6.72% |
| Pretax margin | 8.35% | 10.56% | 12.79% | 15.63% | 18.12% | 19.23% | 20.69% | 19.45% | 18.24% | 14.51% | -1.58% | -10.10% | -18.38% | -21.36% | -6.09% | -3.38% | -0.62% | 2.36% | 4.35% | 4.53% |
| Net profit margin | 6.75% | 8.52% | 10.53% | 12.62% | 14.35% | 15.16% | 15.97% | 16.01% | 15.37% | 12.11% | -2.44% | -10.73% | -17.48% | -19.19% | -4.29% | -2.29% | -0.19% | 1.93% | 3.23% | 3.41% |
Over the past eight quarters, Olin Corp.'s profitability ratios have displayed a declining trend. The gross profit margin has decreased consistently from 23.27% in Q4 2022 to 17.06% in Q4 2023, indicating a reduction in profitability at the gross level. Similarly, the operating profit margin has declined from 19.07% in Q4 2022 to 11.10% in Q4 2023, showing a diminishing operational efficiency in generating profits from core business activities.
The pretax margin has also exhibited a downward trajectory, dropping from 17.88% in Q4 2022 to 8.19% in Q4 2023, signifying a decrease in profitability before accounting for taxes and other expenses. Moreover, the net profit margin has shown a consistent decline, falling from 14.15% in Q4 2022 to 6.73% in Q4 2023, highlighting a reduction in the company's bottom-line net income when compared to its revenues.
Overall, the downward trend in profitability ratios suggests potential challenges for Olin Corp. in maintaining its profitability and efficiency in generating profits over the analyzed quarters. Further analysis of the company's cost structure, pricing strategies, and revenue sources may be necessary to address the declining profitability trend and improve the overall financial performance of the company.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 5.86% | 7.67% | 10.19% | 13.42% | 16.50% | 17.48% | 17.43% | 16.86% | 15.22% | 11.06% | -1.97% | -7.65% | -11.73% | -12.27% | -2.60% | -1.45% | -0.12% | 1.29% | 2.92% | 3.80% |
| Return on total capital | 15.35% | 18.21% | 22.31% | 28.54% | 35.58% | 40.35% | 42.17% | 38.26% | 36.07% | 27.58% | 3.67% | -5.44% | -13.75% | -15.79% | -1.13% | 0.92% | 3.58% | 6.40% | 9.95% | 11.85% |
| Return on equity (ROE) | 20.25% | 25.77% | 33.33% | 43.64% | 52.17% | 56.36% | 56.10% | 51.91% | 48.89% | 40.08% | -8.21% | -38.09% | -66.85% | -69.03% | -10.65% | -5.81% | -0.47% | 4.47% | 9.75% | 12.29% |
Olin Corp.'s profitability ratios have shown a general trend of declining over the past quarters. The Operating Return on Assets (Operating ROA) has decreased from 9.84% in Q4 2023 to 18.86% in Q1 2023, indicating lower operating income generated relative to the assets employed in the business. This may suggest inefficiencies in asset utilization or operational performance.
Similarly, the Return on Assets (ROA) has decreased from 5.97% in Q4 2023 to 13.42% in Q1 2023, reflecting a decline in overall profitability relative to the total assets. This could indicate challenges in generating profits from the company's assets or a decrease in asset efficiency.
Furthermore, the Return on Total Capital has exhibited a declining trend from 15.48% in Q4 2023 to 29.03% in Q1 2023, reflecting a decrease in the company's ability to generate returns on its total capital employed. This could imply lower efficiency in capital allocation or increased capital costs impacting profitability.
Lastly, the Return on Equity (ROE) has also shown a decreasing trend, falling from 20.61% in Q4 2023 to 43.64% in Q1 2023. This suggests a decline in the company's ability to generate returns for its equity shareholders, perhaps signaling challenges in creating value for equity investors.
Overall, the decreasing trend in Olin Corp.'s profitability ratios indicates potential challenges in operational efficiency, asset utilization, capital allocation, and shareholder value creation. Further analysis of the company's financial performance and operational strategies may be warranted to address these declining profitability trends.