O-I Glass Inc (OI)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,452,000 | 6,483,000 | 6,465,000 | 6,506,000 | 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 |
| Total current assets | US$ in thousands | 2,478,000 | 2,822,000 | 2,819,000 | 2,660,000 | 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 |
| Total current liabilities | US$ in thousands | 2,160,000 | 2,292,000 | 2,234,000 | 2,602,000 | 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 |
| Working capital turnover | 20.29 | 12.23 | 11.05 | 112.17 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,452,000K ÷ ($2,478,000K – $2,160,000K)
= 20.29
The working capital turnover ratio of O-I Glass Inc has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio measures the efficiency of the company in using its working capital to generate sales revenue.
The trend of the working capital turnover ratio shows significant variability, with values ranging from as low as 5.28 to as high as 112.17. The ratio peaked at a remarkably high level of 112.17 on March 31, 2024, indicating a significant improvement in the company's ability to utilize its working capital efficiently to support sales.
However, it is essential to consider the context of such extreme values. An exceedingly high working capital turnover ratio could potentially raise concerns about whether the company may be overly aggressive in managing its working capital, potentially risking operational stability or customer relationships.
Overall, a fluctuating trend in the working capital turnover ratio suggests changes in the company's working capital management practices, which may impact its financial performance and liquidity position. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of O-I Glass Inc's working capital efficiency.