O-I Glass Inc (OI)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,531,000 | 7,105,000 | 6,615,000 | 6,138,000 | 6,097,000 |
| Property, plant and equipment | US$ in thousands | 3,296,000 | 3,555,000 | 2,962,000 | 2,817,000 | 2,907,000 |
| Fixed asset turnover | 1.98 | 2.00 | 2.23 | 2.18 | 2.10 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,531,000K ÷ $3,296,000K
= 1.98
O-I Glass Inc's fixed asset turnover has shown a generally positive trend over the past five years. The ratio increased from 2.10 in December 31, 2020, to 2.18 in December 31, 2021, and further improved to 2.23 by December 31, 2022. However, there was a slight decline in the ratio to 2.00 by December 31, 2023, and a marginal decrease to 1.98 by December 31, 2024.
The fixed asset turnover ratio measures the efficiency of the company in generating sales revenue from its investments in fixed assets. A higher ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.
Overall, O-I Glass Inc's fixed asset turnover ratio demonstrates mixed performance over the period, with fluctuations in efficiency in utilizing its fixed assets to generate sales. Monitoring this ratio can provide valuable insights into the company's operational efficiency and asset management strategies.