O-I Glass Inc (OI)
Payables 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 |
| Payables | US$ in thousands | 1,142,000 | 1,437,000 | 1,355,000 | 1,210,000 | 1,126,000 |
| Payables turnover | 4.80 | 3.90 | 4.57 | 4.82 | 5.12 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,486,000K ÷ $1,142,000K
= 4.80
The payables turnover ratio of O-I Glass Inc has been showing a declining trend over the past five years. In December 2020, the payables turnover was 5.12, indicating that the company was able to pay off its suppliers 5.12 times during that year. However, by December 2024, the payables turnover had decreased to 4.80, suggesting a reduction in the frequency of paying off suppliers.
The decreasing trend in payables turnover may signal potential liquidity challenges or changes in the company's payment terms with suppliers. A lower payables turnover ratio could imply that the company is taking longer to settle its payables, which could have implications for its working capital management and relationships with vendors.
It is important for O-I Glass Inc to closely monitor its payables turnover ratio and assess the reasons behind the decline to ensure efficient management of its accounts payable and maintain healthy supplier relationships.