O-I Glass Inc (OI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,486,000 | 5,609,000 | 6,188,000 | 5,827,000 | 5,763,000 |
| Inventory | US$ in thousands | 963,000 | 1,071,000 | 848,000 | 816,000 | 841,000 |
| Inventory turnover | 5.70 | 5.24 | 7.30 | 7.14 | 6.85 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,486,000K ÷ $963,000K
= 5.70
The inventory turnover ratio measures how efficiently a company manages its inventory by calculating how many times a company's inventory is sold and replaced over a period.
For O-I Glass Inc, the inventory turnover has demonstrated a generally stable trend over the years. In 2020, the ratio stood at 6.85 and showed a slight improvement to 7.14 in 2021. The efficiency in managing inventory continued to increase, reaching 7.30 in 2022. However, there was a notable decrease in 2023 with a ratio of 5.24 before slightly recovering to 5.70 in 2024.
A high inventory turnover ratio indicates that the company is effectively selling its inventory and restocking at a fast pace. On the other hand, a decreasing ratio may suggest potential issues such as overstocking, obsolete inventory, or decreasing sales. It is important for O-I Glass Inc to monitor and analyze the reasons behind fluctuations in the inventory turnover ratio to optimize its inventory management processes and improve overall efficiency.