---
title: "Investors Will Want Olin's (NYSE:OLN) Growth In ROCE To Persist"
description: "Olin's (NYSE:OLN) return on capital employed (ROCE) has shown significant improvement, growing by 42,710% over the last five years, despite a current ROCE of 3.2%, which is below the Chemicals industr"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/258240438.md"
published_at: "2025-09-21T14:50:46.000Z"
---

# Investors Will Want Olin's (NYSE:OLN) Growth In ROCE To Persist

> Olin's (NYSE:OLN) return on capital employed (ROCE) has shown significant improvement, growing by 42,710% over the last five years, despite a current ROCE of 3.2%, which is below the Chemicals industry average of 9.2%. The company is utilizing 24% less capital than five years ago, indicating improved efficiency. While Olin's stock has performed well, further due diligence is recommended due to some identified risks. Investors are encouraged to monitor Olin's growth in ROCE and overall business model.

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a trend of growing *return* on capital employed (ROCE) and alongside that, an expanding *base* of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Speaking of which, we noticed some great changes in **Olin's** (NYSE:OLN) returns on capital, so let's have a look.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

## Understanding Return On Capital Employed (ROCE)

For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Olin:

**Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)**

0.032 = US$195m ÷ (US$7.7b - US$1.5b) *(Based on the trailing twelve months to June 2025)*.

So, **Olin has an ROCE of 3.2%.** In absolute terms, that's a low return and it also under-performs the Chemicals industry average of 9.2%.

Check out our latest analysis for Olin

Above you can see how the current ROCE for Olin compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Olin for **free.**

## What Does the ROCE Trend For Olin Tell Us?

While the ROCE is still rather low for Olin, we're glad to see it heading in the right direction. The figures show that over the last five years, returns on capital have grown by 42,710%. That's a very favorable trend because this means that the company is earning more per dollar of capital that's being employed. Speaking of capital employed, the company is actually utilizing 24% less than it was five years ago, which can be indicative of a business that's improving its efficiency. If this trend continues, the business might be getting more efficient but it's shrinking in terms of total assets.

## In Conclusion...

In summary, it's great to see that Olin has been able to turn things around and earn higher returns on lower amounts of capital. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence.

Olin does have some risks, we noticed **2 warning signs** (and 1 which is potentially serious) we think you should know about.

While Olin isn't earning the highest return, check out this **free** list of companies that are earning high returns on equity with solid balance sheets.

### Related Stocks

- [OLN.US - OLIN](https://longbridge.com/en/quote/OLN.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| OLIN｜8-K：2025 财年 Q4 营收 16.65 亿美元超过预期 |  | [Link](https://longbridge.com/en/news/274203402.md) |
| R Nichole Sumner 出售了 4,750 股 OLIN（NYSE:OLN）的股票 | Olin Corporation 副总裁 R Nichole Sumner 以平均价格 22.49 美元出售了 4,750 股 Olin 股票，总计 106,827.50 美元。出售后，她持有 24,771 股，价值约 557,099.79 | [Link](https://longbridge.com/en/news/275024273.md) |
| Birlasoft（NSE:BSOFT）的回报趋势不太吸引人 | Birlasoft（NSE:BSOFT）的资本回报率（ROCE）稳定在 18%，高于软件行业平均水平的 12%。尽管过去五年 ROCE 趋势平稳，但公司已将其投入资本增加了 78%。虽然回报尚可，但对于寻求高增长的投资者来说，可能并不具吸引 | [Link](https://longbridge.com/en/news/275993031.md) |
| Zodiac Energy（NSE:ZODIAC）强劲的资本回报意味着什么 | Zodiac Energy (NSE:ZODIAC) 的资本回报率 (ROCE) 达到了 20%，超过了行业平均水平的 18%。在过去五年中，该公司保持了这一 ROCE，同时其资本投入增加了 727%。这种持续的表现为股东带来了惊人的 2, | [Link](https://longbridge.com/en/news/275549851.md) |
| 关于 Remus Pharmaceuticals（NSE:REMUS）的资本回报率，有理由感到不安 | Remus Pharmaceuticals (NSE:REMUS) 的资本回报率 (ROCE) 为 13%，接近医疗行业的平均水平 12%。然而，其 ROCE 在过去五年中从 37% 下降，表明尽管资本和收入增加，但效率有所下降。该公司已将 | [Link](https://longbridge.com/en/news/275547724.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.