O-I Glass Inc (OI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,759,000 | 6,615,000 | 6,138,000 | 6,097,000 | 6,375,000 |
| Property, plant and equipment | US$ in thousands | 3,555,000 | 2,962,000 | 2,817,000 | 2,907,000 | 3,273,000 |
| Fixed asset turnover | 1.90 | 2.23 | 2.18 | 2.10 | 1.95 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,759,000K ÷ $3,555,000K
= 1.90
The fixed asset turnover ratio for O-I Glass Inc has fluctuated over the past five years, ranging from 1.90 to 2.23. This ratio measures how efficiently the company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
In 2022, O-I Glass Inc experienced a peak in fixed asset turnover at 2.23, suggesting improved efficiency in utilizing its fixed assets to generate sales. However, this ratio slightly declined to 2.18 in 2021 before further decreasing to 2.10 in 2020. Despite the fluctuations, the company's fixed asset turnover ratio remained above 2.0 in recent years, indicating a relatively efficient use of its fixed assets.
It is important for O-I Glass Inc to closely monitor its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and strive for continuous improvement in efficiency. Analyzing the trend of this ratio over time can provide valuable insights into the company's operational efficiency and effectiveness in managing its fixed asset investments.