Olin Corporation (OLN)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 108,600 460,200 1,326,900 1,296,700 -969,900
Total stockholders’ equity US$ in thousands 2,055,400 2,232,400 2,543,600 2,652,200 1,452,300
ROE 5.28% 20.61% 52.17% 48.89% -66.78%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $108,600K ÷ $2,055,400K
= 5.28%

The return on equity (ROE) of Olin Corporation has shown significant fluctuations over the past five years. The ROE was notably negative at -66.78% as of December 31, 2020, indicating that the company had incurred losses relative to its equity during that period. However, there was a strong turnaround in the following years, with ROE increasing to 48.89% by December 31, 2021, and further to 52.17% by December 31, 2022, reflecting improved profitability and more efficient use of shareholder equity.

Subsequently, the ROE dipped to 20.61% by December 31, 2023, suggesting a slight decline in the company's ability to generate returns for its equity holders. By December 31, 2024, the ROE decreased further to 5.28%, indicating a notable decrease in profitability compared to the previous years.

Overall, the fluctuating trend in Olin Corporation's ROE signifies varying levels of profitability and efficiency in utilizing equity over the five-year period, which may warrant further investigation into the company's operational performance and financial strategies.