O-I Glass Inc (OI)
Working capital 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 |
| Total current assets | US$ in thousands | 2,884,000 | 2,603,000 | 2,519,000 | 2,297,000 | 2,488,000 |
| Total current liabilities | US$ in thousands | 2,346,000 | 2,357,000 | 1,846,000 | 1,898,000 | 1,995,000 |
| Working capital turnover | 12.56 | 26.89 | 9.12 | 15.28 | 12.93 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,759,000K ÷ ($2,884,000K – $2,346,000K)
= 12.56
The working capital turnover of O-I Glass Inc has exhibited fluctuations over the past five years. In 2023, the working capital turnover ratio decreased to 12.56 from 26.89 in 2022, indicating a decline in the efficiency of the company in utilizing its working capital to generate revenue. This may suggest potential inefficiencies in managing the company's current assets and liabilities in the most optimal manner.
Comparing the 2023 ratio with the historical trend, it appears to be lower than the 2020 and 2019 figures but higher than the 2021 ratio. This implies that the company may not be as efficient in utilizing its working capital in the most recent year compared to some prior periods.
Overall, the working capital turnover ratio of O-I Glass Inc fluctuated significantly over the years, indicating varying levels of efficiency in generating revenue from its working capital. Further analysis and comparison with industry benchmarks may be necessary to assess the company's performance in this aspect comprehensively.