Olin Corporation (OLN)

Return on assets (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
Net income (ttm) US$ in thousands 452,000 599,800 810,500 1,087,900 1,326,900 1,436,900 1,512,400 1,446,100 1,296,700 957,100 -170,400 -646,300 -969,900 -1,014,100 -233,100 -133,000 -11,300 119,200 270,100 348,700
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
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $452,000K ÷ $7,713,200K
= 5.86%

To analyze Olin Corp.'s return on assets (ROA) based on the provided data, we observe a declining trend over the past eight quarters. In Q1 2022, the ROA was at its peak at 16.86%, followed by relatively stable performance in the subsequent quarters. However, starting from Q1 2023, the ROA began to decrease notably, with successive drops of 2.8%, 2.52%, and 4.45% in Q2 2023, Q3 2023, and Q4 2023, respectively.

This declining trend in ROA may suggest that Olin Corp.'s ability to generate profits from its assets has weakened over time. Factors contributing to this decline could include inefficiencies in asset utilization, increasing costs, or a decrease in revenues relative to the asset base. Investors and stakeholders may want to further investigate the underlying reasons for this trend to assess the company's financial health and performance sustainability.