Olin Corporation (OLN)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 740,400 | 917,600 | 1,148,600 | 1,500,600 | 1,819,900 | 2,070,200 | 2,224,600 | 2,052,600 | 1,886,700 | 1,437,100 | 200,000 | -293,900 | -727,300 | -857,200 | -70,700 | 53,000 | 206,300 | 384,500 | 597,400 | 699,800 |
| Interest expense (ttm) | US$ in thousands | 181,100 | 174,400 | 164,200 | 153,400 | 143,900 | 247,000 | 265,000 | 296,400 | 348,000 | 290,000 | 310,600 | 314,100 | 292,700 | 271,100 | 260,400 | 248,900 | 243,200 | 238,400 | 233,700 | 236,900 |
| Interest coverage | 4.09 | 5.26 | 7.00 | 9.78 | 12.65 | 8.38 | 8.39 | 6.93 | 5.42 | 4.96 | 0.64 | -0.94 | -2.48 | -3.16 | -0.27 | 0.21 | 0.85 | 1.61 | 2.56 | 2.95 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $740,400K ÷ $181,100K
= 4.09
The interest coverage ratio for Olin Corp. has shown a general decreasing trend over the quarters from Q1 2022 to Q4 2023. In Q4 2023, the interest coverage ratio was 4.29, indicating that the company's operating income was sufficient to cover its interest expenses 4.29 times. This represents a decrease from the previous quarter's ratio of 5.81 and continues the downward trend observed throughout the quarters.
Despite the decline, Olin Corp. has maintained a relatively healthy interest coverage ratio, reflecting its ability to meet interest payments comfortably with its operating income. A higher interest coverage ratio is typically preferred by investors and creditors as it signifies a lower risk of default on debt obligations. While the recent ratios have trended lower, Olin Corp. still demonstrates strong coverage of its interest expenses, suggesting a stable financial position in terms of servicing its debt.
It would be important to monitor future trends in the interest coverage ratio to ensure that Olin Corp. can continue to meet its interest obligations without issue.
Peer comparison
Dec 31, 2023