O-I Glass Inc (OI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,759,000 | 6,615,000 | 6,138,000 | 6,097,000 | 6,375,000 |
| Receivables | US$ in thousands | 671,000 | 760,000 | 692,000 | 623,000 | 621,000 |
| Receivables turnover | 10.07 | 8.70 | 8.87 | 9.79 | 10.27 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,759,000K ÷ $671,000K
= 10.07
The receivables turnover ratio for O-I Glass Inc has fluctuated over the past five years. The ratio has ranged from 8.70 to 10.27, with the highest turnover rate observed in 2019. This indicates that, on average, O-I Glass Inc collected its accounts receivable approximately 9 to 10 times each year during the period under review.
A higher receivables turnover ratio suggests that the company is efficient in collecting payments from its customers, while a lower ratio may indicate potential issues with credit policies or the quality of receivables. Therefore, O-I Glass Inc has demonstrated relatively consistent performance in managing its receivables over the past five years, with variations that may reflect changes in business conditions or collection practices. Further analysis in conjunction with other financial metrics would be necessary to gain a deeper understanding of the company's overall financial health and management of working capital.