Olin Corporation (OLN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,591,300 | 2,571,000 | 2,578,200 | 3,837,500 | 3,338,700 |
| Total assets | US$ in thousands | 7,713,200 | 8,044,200 | 8,517,700 | 8,270,900 | 9,187,800 |
| Debt-to-assets ratio | 0.34 | 0.32 | 0.30 | 0.46 | 0.36 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,591,300K ÷ $7,713,200K
= 0.34
The debt-to-assets ratio of Olin Corp. has fluctuated over the past five years, varying from 0.32 in 2022 to 0.47 in 2020. In general, the ratio has been relatively stable, with the latest figure as of December 31, 2023, at 0.35. This indicates that as of the end of 2023, Olin Corp. financed approximately 35% of its total assets through debt.
A lower debt-to-assets ratio suggests that the company relies less on debt to finance its assets, reflecting a stronger financial position and lower financial risk. Conversely, a higher ratio may indicate higher leverage and greater financial risk.
Comparing Olin Corp.'s debt-to-assets ratio to its historical data, the company appears to have managed its debt levels effectively, as the ratio has remained within a reasonable range over the past five years. This demonstrates a level of financial stability and prudent debt management by Olin Corp.
Peer comparison
Dec 31, 2023