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Olin Financial Strength

: 5 (As of Jun. 2022)
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Olin has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Olin's Interest Coverage for the quarter that ended in Jun. 2022 was 16.49. Olin's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.30. As of today, Olin's Altman Z-Score is 3.16.


Competitive Comparison

For the Specialty Chemicals subindustry, Olin's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Olin Financial Strength Distribution

For the Chemicals industry and Basic Materials sector, Olin's Financial Strength distribution charts can be found below:

* The bar in red indicates where Olin's Financial Strength falls into.



Olin Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Olin's Interest Expense for the months ended in Jun. 2022 was $-35 Mil. Its Operating Income for the months ended in Jun. 2022 was $569 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $2,872 Mil.

Olin's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*569/-34.5
=16.49

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Olin's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(276.2 + 2871.7) / 10464.4
=0.30

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Olin has a Z-score of 3.16, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.16 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Olin  (NYSE:OLN) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Olin has the Financial Strength Rank of 5.


Olin Financial Strength Related Terms

Thank you for viewing the detailed overview of Olin's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Olin Business Description

Olin logo
Traded in Other Exchanges
Address
190 Carondelet Plaza, Suite 1530, Clayton, MO, USA, 63105
Olin Corp manufactures and sells a variety of chemicals and chemical-based products. The company organizes itself into three segments based on the product type. The Chlor alkali products and Vinyls segment, which generates the majority of revenue, sells chlorine and caustic soda, which are used in a variety of industries including cosmetics, textiles, crop protection, and fire protection products. The epoxy segment sells epoxy resins used in paints and coatings. The Winchester segment sells sporting ammunition and ammunition accessories under the Winchester brand. The majority of revenue comes from the United States.
Executives
Schumacher Patrick Murphy officer: VP & President, CAPV C/O OLIN CORPORATION, 190 CARONDELET PLZ SUITE 1530 CLAYTON MO 63105
O'brien Dana C. officer: Senior VP, GC & Secretary 1111 LOUISIANA STREET HOUSTON TX 77002
Darnall Matthew S director C/O OLIN CORPORATION 190 CARONDELET PLZ, STE 1530 CLAYTON MO 63105
Will W Anthony director C/O CF INDUSTRIES HOLDINGS, INC. 4 PARKWAY NORTH, SUITE 400 DEERFIELD IL 60015
Gumpel Damian officer: VP & Pres, CAPV C/O OLIN CORPORATION 190 CARONDELET PLZ, STE 1530 CLAYTON MO 63105
Alderman Heidi S director C/O OLIN CORPORATION, 190 CARONDELET PLZ STE 1530 CLAYTON MO 63105
Babcock Beverley A director C/O OLIN CORPORATION 190 CARONDELET PLAZA, SUITE 1530 CLAYTON MO 63105
Smith Vince J director C/O OLIN CORPORATION 190 CARONDELET PLAZA SUITE 1530 CLAYTON MO 63105
Weideman William H director C/O OLIN CORPORATION 190 CARONDELET PLZ, STE 1530 CLAYTON MO 63105
Oconnor John Mb director C/O OLIN CORPORATION 190 CARONDELET PLAZA SUITE 1530 CLAYTON MO 63105
Dudley-williams Carol A director 912 W. SUGNET RD. MIDLAND MI 48640
Bunch C Robert director C/O OLIN CORPORATION 190 CARONDELET PLZ, STE 1530 CLAYTON MO 63105
Sachem Head Gp Llc director 250 WEST 55TH STREET, 34TH FLOOR NEW YORK NY 10019
Hauptfuhrer W Barnes director 200 CLINTON AVENUE W STE 1000 HUNTSVILLE AL 35801
Uncas Gp Llc director 250 WEST 55TH STREET, 34TH FLOOR NEW YORK NY 10019

Olin Headlines

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