Olin Corporation (OLN)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	326,200	42,900	1,819,900	1,732,700	-727,700
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,055,400	2,232,400	2,543,600	2,652,200	1,452,300
Return on total capital		15.87%	1.92%	71.55%	65.33%	-50.11%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $326,200K ÷ ($—K + $2,055,400K)
= 15.87%

Olin Corporation's return on total capital has displayed significant volatility over the past five years. In December 2020, the return on total capital was -50.11%, indicating that the company's capital investments failed to generate adequate returns. However, by December 2021, the return on total capital improved substantially to 65.33%, which suggests a more efficient utilization of capital and increased profitability.

The trend continued positively in December 2022, with the return on total capital rising further to 71.55%, indicating enhanced capital efficiency and improved financial performance. However, in December 2023, there was a notable drop in the return on total capital to 1.92%, signaling a potential challenge in maintaining previous levels of profitability.

By December 2024, the return on total capital recovered to 15.87%, showcasing a moderate improvement in capital utilization and profitability compared to the previous year. Overall, Olin Corporation's return on total capital has shown fluctuations, with periods of strong performance followed by periods of variability, suggesting the company's ongoing efforts to optimize its capital allocation and operational efficiency.