O-I Glass Inc (OI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,147,000 | 6,188,000 | 5,827,000 | 5,763,000 | 6,145,000 |
| Inventory | US$ in thousands | 1,071,000 | 848,000 | 816,000 | 841,000 | 1,045,000 |
| Inventory turnover | 5.74 | 7.30 | 7.14 | 6.85 | 5.88 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,147,000K ÷ $1,071,000K
= 5.74
Based on the data provided, O-I Glass Inc's inventory turnover has fluctuated over the past five years. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the inventory is sold and replaced in a given period.
In 2023, O-I Glass Inc's inventory turnover ratio was 5.74, showing a decrease from the previous year's ratio of 7.30. This decline may indicate that the company took longer to sell and replace its inventory in 2023 compared to 2022. However, it is worth noting that the ratio remained above 5, which generally indicates that the company is efficiently managing its inventory.
Comparing the 2023 ratio to the ratios in previous years, O-I Glass Inc's inventory turnover has shown some variability but has generally been within a relatively stable range. The peak in inventory turnover was seen in 2022 at 7.30, indicating that the company was more efficient in managing its inventory that year.
Overall, while the slight decrease in the inventory turnover ratio in 2023 may raise some concerns, the company's historical performance suggests that O-I Glass Inc has maintained a reasonably efficient inventory management strategy over the past five years. It would be advisable for the company to monitor its inventory turnover closely to ensure optimal inventory management efficiency.