O-I Glass Inc (OI)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,148,000 | 6,172,000 | 6,226,000 | 6,173,000 | 6,186,000 | 6,120,000 | 6,062,000 | 5,978,000 | 5,830,000 | 5,756,000 | 5,771,000 | 5,711,000 | 5,763,000 | 5,851,000 | 5,935,000 | 6,097,000 | 6,143,000 | 6,622,000 | 6,497,000 | 6,333,000 |
| Payables | US$ in thousands | 1,437,000 | 1,250,000 | 1,320,000 | 1,304,000 | 1,355,000 | 1,171,000 | 1,190,000 | 1,169,000 | 1,210,000 | 1,062,000 | 1,038,000 | 998,000 | 1,126,000 | 910,000 | 916,000 | 1,025,000 | 1,276,000 | 1,064,000 | 1,074,000 | 1,065,000 |
| Payables turnover | 4.28 | 4.94 | 4.72 | 4.73 | 4.57 | 5.23 | 5.09 | 5.11 | 4.82 | 5.42 | 5.56 | 5.72 | 5.12 | 6.43 | 6.48 | 5.95 | 4.81 | 6.22 | 6.05 | 5.95 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,148,000K ÷ $1,437,000K
= 4.28
The payables turnover ratio for O-I Glass Inc has been fluctuating over the past few quarters. It measures how efficiently the company is managing its accounts payables by evaluating how many times a company pays off its average accounts payable balance in a given period.
From the data provided, it can be observed that the payables turnover ratio has ranged between 4.28 to 6.48 over the last twenty quarters. The higher the ratio, the better it is for the company as it indicates that the company is paying off its payables more frequently.
A higher payables turnover ratio may suggest that the company is managing its payables effectively, negotiating favorable credit terms, and maintaining good relationships with its suppliers. On the other hand, a lower ratio may indicate inefficiencies in managing payables or potential liquidity issues.
Overall, the trend in O-I Glass Inc's payables turnover ratio has shown some variability, with fluctuations in the ratio over time. Further analysis and comparison with industry benchmarks can provide more insights into the company's payables management efficiency.