Olin Corporation (OLN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 452,000 | 1,326,900 | 1,296,700 | -969,900 | -11,300 |
| Total stockholders’ equity | US$ in thousands | 2,232,400 | 2,543,600 | 2,652,200 | 1,450,800 | 2,417,500 |
| ROE | 20.25% | 52.17% | 48.89% | -66.85% | -0.47% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $452,000K ÷ $2,232,400K
= 20.25%
Olin Corp.'s return on equity (ROE) has displayed significant fluctuations over the past five years. In 2023, the ROE stood at 20.61%, indicating a moderate return on shareholder equity. This represents a decrease from the exceptionally high ROE of 52.17% in 2022 and 48.89% in 2021. These years were characterized by strong profitability and efficiency in generating returns for shareholders.
However, a notable concern arises when looking back at 2020 and 2019, where Olin Corp. experienced negative ROE figures of -66.85% and -0.47%, respectively. The negative ROE in 2020 signifies that the company incurred a net loss, leading to a negative return on equity for shareholders.
The drastic fluctuation in ROE over the years indicates potential volatility in Olin Corp's financial performance and management of shareholder equity. Further investigation into the factors driving these fluctuations, such as profitability, asset utilization, and financial leverage, would be necessary to gain a deeper understanding of Olin Corp.'s financial health and efficiency in utilizing shareholder funds.
Peer comparison
Dec 31, 2023