Olin Corporation (OLN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,232,400 | 2,543,600 | 2,652,200 | 1,450,800 | 2,417,500 |
| Debt-to-capital ratio | 0.54 | 0.50 | 0.49 | 0.73 | 0.58 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,591,300K ÷ ($2,591,300K + $2,232,400K)
= 0.54
The debt-to-capital ratio of Olin Corp. has fluctuated over the last five years, ranging from 0.50 to 0.73. In 2023, the ratio increased to 0.54 from 0.50 in 2022, indicating a higher proportion of debt relative to total capital. Despite the uptick, the current ratio still remains below the peak of 0.73 observed in 2020. The company's debt-to-capital ratio in 2021 and 2019 was 0.51 and 0.58, respectively. This trend suggests that Olin Corp. has effectively managed its leverage over the years, although there was a spike in debt relative to capital in 2020. Overall, monitoring the debt-to-capital ratio can provide insights into the company's capital structure and financial risk management strategies.
Peer comparison
Dec 31, 2023