O-I Glass Inc (OI)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,758,000 | 6,774,000 | 6,737,000 | 6,697,000 | 6,614,000 | 6,562,000 | 6,493,000 | 6,371,000 | 6,137,000 | 6,050,000 | 6,326,000 | 6,037,000 | 6,098,000 | 6,194,000 | 5,944,000 | 6,313,000 | 6,375,000 | 6,415,000 | 6,565,000 | 6,649,000 |
| Total current assets | US$ in thousands | 2,884,000 | 2,899,000 | 3,035,000 | 2,752,000 | 2,603,000 | 2,430,000 | 2,617,000 | 2,490,000 | 2,519,000 | 2,442,000 | 2,399,000 | 2,486,000 | 2,297,000 | 2,384,000 | 3,012,000 | 2,962,000 | 2,488,000 | 2,534,000 | 2,943,000 | 2,579,000 |
| Total current liabilities | US$ in thousands | 2,346,000 | 2,070,000 | 2,131,000 | 2,255,000 | 2,357,000 | 2,096,000 | 1,785,000 | 1,750,000 | 1,846,000 | 1,738,000 | 1,687,000 | 1,702,000 | 1,898,000 | 1,697,000 | 1,886,000 | 1,824,000 | 1,995,000 | 2,195,000 | 1,929,000 | 1,860,000 |
| Working capital turnover | 12.56 | 8.17 | 7.45 | 13.47 | 26.89 | 19.65 | 7.80 | 8.61 | 9.12 | 8.59 | 8.88 | 7.70 | 15.28 | 9.02 | 5.28 | 5.55 | 12.93 | 18.92 | 6.47 | 9.25 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,758,000K ÷ ($2,884,000K – $2,346,000K)
= 12.56
O-I Glass Inc's working capital turnover ratio has fluctuated significantly over the past few quarters, indicating varying efficiency in utilizing its working capital to generate revenue.
The working capital turnover ratio measures how effectively a company is using its working capital to support its sales. A higher ratio indicates that the company is generating more sales per unit of working capital invested, demonstrating efficient management of resources.
In the most recent quarter, the working capital turnover ratio was 12.56, reflecting a substantial improvement from the previous quarter. This suggests that O-I Glass Inc was able to generate higher sales relative to its working capital at the end of the year.
However, the ratio has shown considerable variability throughout the quarters, ranging from as high as 26.89 to as low as 5.28. This indicates inconsistent performance in managing working capital efficiency over the period under review.
Overall, O-I Glass Inc should continue to monitor and improve its working capital management practices to maintain consistency in its working capital turnover ratio and ensure efficient utilization of resources to drive sales growth in the long run.