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.
Peer comparison
Dec 31, 2024