Olin Corporation (OLN)
Return on equity (ROE)
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net income (ttm) | US$ in thousands | 108,600 | 150,800 | 279,800 | 352,500 | 460,200 | 603,900 | 815,000 | 1,090,200 | 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 |
Total stockholders’ equity | US$ in thousands | 2,055,400 | 2,056,700 | 2,136,100 | 2,172,000 | 2,232,400 | 2,327,500 | 2,432,000 | 2,492,800 | 2,543,600 | 2,549,700 | 2,696,100 | 2,785,900 | 2,652,200 | 2,387,900 | 2,074,700 | 1,696,600 | 1,452,300 | 1,469,100 | 2,188,900 | 2,289,100 |
ROE | 5.28% | 7.33% | 13.10% | 16.23% | 20.61% | 25.95% | 33.51% | 43.73% | 52.17% | 56.36% | 56.10% | 51.91% | 48.89% | 40.08% | -8.21% | -38.09% | -66.78% | -69.03% | -10.65% | -5.81% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $108,600K ÷ $2,055,400K
= 5.28%
The return on equity (ROE) for Olin Corporation has displayed a significant improvement over the past few quarters. The company experienced negative ROE figures for most of the fiscal year 2020 and early 2021, indicating inefficiencies in utilizing shareholder equity to generate profits.
However, from the third quarter of 2021 onwards, Olin's ROE turned positive and exhibited a strong upward trend. ROE surged to 40.08% in Q3 2021 and further increased to 56.36% by Q3 2022, reflecting a notable improvement in profitability and efficiency in utilizing shareholders' equity.
The ROE reached its peak at 56.36% in Q3 2022, demonstrating Olin's ability to generate more profits relative to the shareholder equity invested. Although there was a slight decline in ROE in subsequent quarters, the figures remained above 20% until the end of 2024.
The positive trend in ROE indicates that Olin Corporation has been effectively leveraging its equity to generate returns for its shareholders, showcasing improved financial performance and operational efficiency during this period.
Peer comparison
Dec 31, 2024