Olin Corporation (OLN)

Solvency ratios

	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
Debt-to-assets ratio	0.34	0.35	0.34	0.34	0.32	0.31	0.30	0.30	0.30	0.33	0.39	0.44	0.46	0.48	0.45	0.38	0.36	0.36	0.35	0.33
Debt-to-capital ratio	0.54	0.54	0.53	0.53	0.50	0.50	0.49	0.48	0.49	0.54	0.62	0.69	0.73	0.73	0.65	0.60	0.58	0.56	0.54	0.52
Debt-to-equity ratio	1.16	1.16	1.12	1.11	1.01	1.01	0.96	0.93	0.97	1.18	1.63	2.18	2.65	2.70	1.86	1.52	1.38	1.25	1.17	1.08
Financial leverage ratio	3.46	3.36	3.27	3.25	3.16	3.22	3.22	3.08	3.21	3.62	4.17	4.98	5.70	5.63	4.10	4.01	3.80	3.46	3.33	3.23

Based on the solvency ratios of Olin Corp. from Q4 2022 to Q4 2023, we can observe the following trends:

1. Debt-to-assets ratio has been relatively stable, fluctuating between 0.32 and 0.36 over the past eight quarters. This indicates that Olin Corp. has been able to manage its debt levels in relation to its total assets consistently.

2. Debt-to-capital ratio shows a similar trend to the debt-to-assets ratio, hovering between 0.50 and 0.55 during the same period. This suggests that the company's reliance on debt to finance its operations compared to its capital base has been relatively steady.

3. Debt-to-equity ratio has shown an increasing trend, rising from 1.00 in Q1 2022 to 1.20 in Q4 2023. This implies that Olin Corp. has been increasing its debt levels compared to its equity, which could indicate a higher financial risk.

4. Financial leverage ratio has also increased steadily from 3.08 in Q1 2022 to 3.46 in Q4 2023. This suggests that the company has been relying more on debt to support its business activities, potentially leading to higher financial leverage and associated risks.

Overall, while Olin Corp. has maintained a relatively stable debt-to-assets and debt-to-capital ratio, the increasing trend in the debt-to-equity ratio and financial leverage ratio indicates a higher level of debt relative to equity and capital, which may raise concerns about the company's solvency and financial stability over time.

Coverage ratios

	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
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

The interest coverage ratio measures the ability of a company to meet its interest payments on outstanding debt using its operating income. A higher ratio indicates a stronger ability to cover interest expenses.

Analyzing Olin Corp.'s interest coverage over the past eight quarters reveals a fluctuating trend. In Q4 2023, the interest coverage ratio was 4.29, which was a decrease from the previous quarter at 5.81 and continued a downward trend from previous quarters. This indicates a potential weakening ability to cover interest payments using operating income.

Comparing to historical data, Olin Corp.'s interest coverage was notably higher in the earlier quarters of 2022, with ratios above 6.89, up to 12.62 in Q4 2022. This suggests that the company's ability to cover interest expenses was stronger during that period.

Overall, the recent downward trend in interest coverage for Olin Corp. warrants monitoring, as it may indicate increased financial risk associated with the ability to meet interest obligations. It would be important for stakeholders to assess the reasons behind this decline and evaluate the company's financial health and risk management strategies.