Olin Corporation (OLN)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.69 | 3.66 | 3.59 | 3.50 | 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 |
Olin Corporation's solvency ratios reflect a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The Debt-to-Assets ratio has remained at 0.00 over the past few years, indicating that the company has not relied heavily on debt to finance its operations.
Similarly, the Debt-to-Capital and Debt-to-Equity ratios have also consistently been at 0.00, demonstrating Olin Corporation's ability to maintain a balanced capital structure without excessive debt burdens. These ratios suggest that the company's capital is primarily funded by equity rather than debt.
The Financial Leverage Ratio, which measures the extent of a company's financial leverage, has shown a decreasing trend over the periods analyzed. The ratio decreased from 4.01 on March 31, 2020, to 3.69 on December 31, 2024. This further underscores Olin Corporation's prudent financial management and reduced reliance on borrowed funds.
Overall, Olin Corporation's solvency ratios indicate a sound financial position and effective management of debt, contributing to the company's stability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.84 | 2.04 | 2.94 | 3.32 | 4.37 | 5.58 | 7.26 | 10.13 | 12.60 | 8.39 | 8.37 | 6.45 | 5.03 | 4.45 | 0.27 | -0.87 | -2.43 | -3.03 | -0.21 | 0.26 |
The interest coverage ratio, a key financial metric, indicates a company's ability to meet its interest expenses with its earnings before interest and taxes (EBIT). A higher ratio suggests that the company can easily service its interest obligations, while a lower ratio raises concerns about the firm's financial health and solvency.
Analyzing Olin Corporation's interest coverage over the past few quarters, we note a significant fluctuation from negative figures around -3.03 in September 2020 to positive figures reaching 12.60 in December 2022. This variability indicates fluctuations in Olin Corporation's ability to cover its interest expenses over time.
From a financial perspective, the trend shows improvement with a gradual increase in the interest coverage ratio. Olin Corporation's interest coverage ratio has experienced a positive upward trajectory since mid-2023, reaching levels of over 10, demonstrating a substantial improvement in the company's ability to meet its interest obligations with its earnings.
Overall, the data suggests that Olin Corporation has made progress in enhancing its ability to handle interest payments, which is a positive signal for the company's financial stability and ability to service its debt in the future. It is essential for investors and stakeholders to monitor this ratio continuously to assess Olin Corporation's financial health and debt repayment capacity.