O-I Glass Inc (OI)
Payables 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 |
| Payables | US$ in thousands | 1,437,000 | 1,355,000 | 1,210,000 | 1,126,000 | 1,276,000 |
| Payables turnover | 4.28 | 4.57 | 4.82 | 5.12 | 4.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,147,000K ÷ $1,437,000K
= 4.28
The payables turnover ratio for O-I Glass Inc has shown a declining trend over the past five years, decreasing from 5.12 in 2020 to 4.28 in 2023. This indicates that the company is taking longer to pay its suppliers compared to previous years. A lower payables turnover ratio may suggest a less efficient management of payables, potentially leading to strained supplier relationships or missed opportunities for early payment discounts. It is important for the company to closely monitor its payables turnover and work towards optimizing its payment processes to improve liquidity management and maintain positive relationships with its suppliers.