Olin Corporation (OLN)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	339,600	381,900	542,500	607,700	792,300	972,800	1,192,900	1,553,800	1,813,300	2,072,200	2,217,900	1,913,200	1,751,900	1,291,400	84,900	-274,800	-711,200	-820,500	-55,900	65,000
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		16.52%	18.57%	25.40%	27.98%	35.49%	41.80%	49.05%	62.33%	71.29%	81.27%	82.26%	68.67%	66.05%	54.08%	4.09%	-16.20%	-48.97%	-55.85%	-2.55%	2.84%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $339,600K ÷ ($—K + $2,055,400K)
= 16.52%

The return on total capital for Olin Corporation has shown fluctuations over the past few years. It was negative in some quarters, indicating that the company was not effectively utilizing its capital to generate returns. However, there has been a notable improvement in recent quarters, with the return on total capital increasing consistently.

The return on total capital improved significantly from -55.85% in September 2020 to 82.26% in June 2022, indicating a strong performance in capital efficiency during this period. The company continued to demonstrate positive results, with the return on total capital reaching a peak of 82.26% in June 2022 before gradually declining to 16.52% by December 2024.

Overall, the upward trend in the return on total capital reflects an improvement in the company's ability to generate profits from its total capital investment. Olin Corporation appears to have enhanced its operational efficiency and financial performance over the period under review.