Olin Corporation (OLN)

Based on the solvency ratios of Olin Corp. for the years 2019 to 2023, we can observe the following trends:

1. Debt-to-assets ratio: The company's debt-to-assets ratio has fluctuated over the years, ranging from 0.32 in 2022 to 0.47 in 2020. In 2023, the ratio stands at 0.35, indicating that 35% of the company's assets are financed by debt. The ratio remains relatively stable overall, suggesting Olin Corp. has effectively managed its debt levels in relation to its total assets.

2. Debt-to-capital ratio: Olin Corp.'s debt-to-capital ratio has also shown variability, with values ranging from 0.50 in 2022 to 0.73 in 2020. In 2023, the ratio is at 0.54, indicating that 54% of the company's capital structure is funded by debt. The ratio has seen fluctuations over the years but appears to be within reasonable limits.

3. Debt-to-equity ratio: The debt-to-equity ratio of Olin Corp. has exhibited significant variations, from 1.01 in 2022 to 2.66 in 2020. In 2023, the ratio is at 1.20, suggesting that the company has 1.20 times more debt than equity in its capital structure. The ratio has seen fluctuations, indicating changes in the level of financial leverage employed by the company.

4. Financial leverage ratio: Olin Corp.'s financial leverage ratio has also shown fluctuations over the years, ranging from 3.16 in 2022 to 5.70 in 2020. In 2023, the ratio stands at 3.46, indicating that the company's financial leverage is 3.46 times its equity. The ratio indicates the extent to which the company relies on debt to finance its operations and investments.

Overall, Olin Corp. has demonstrated a degree of stability in managing its debt levels as indicated by the various solvency ratios. However, the company's financial leverage ratio indicates a notable level of debt utilization, which should be monitored to ensure sustainable financial health.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Looking at Olin Corp.'s interest coverage over the past five years, we observe:
- In 2023, the interest coverage was 4.29, showing a decrease from the previous year. This may indicate that Olin Corp.'s ability to cover interest expenses with its operating income has weakened.
- In 2022, the interest coverage was 12.62, which was a strong improvement from the previous year. This suggests that Olin Corp.'s operating income was significantly more robust in relation to its interest obligations.
- In 2021, the interest coverage was 5.40, showing a moderate decrease from the prior year. This indicates that Olin Corp. still had a relatively healthy ability to cover its interest expenses.
- In 2020, the interest coverage was -0.13, indicating a negative coverage ratio. This implies that Olin Corp.'s operating income was insufficient to cover its interest expenses, raising concerns about its financial health.
- In 2019, the interest coverage was 1.05, indicating a modest ability to cover interest expenses. However, the ratio was relatively low, suggesting a more limited margin of safety.

Overall, while there have been fluctuations in Olin Corp.'s interest coverage ratio over the past five years, the company should focus on maintaining a robust operating income to ensure it can comfortably meet its interest obligations in the future.