O-I Glass Inc (OI)

O-I Glass Inc's liquidity ratios indicate the company's ability to meet its short-term obligations.

- The current ratio has shown fluctuations over the past five years, ranging from a low of 1.10 in 2022 to a high of 1.36 in 2021. It currently stands at 1.15 as of December 31, 2024. This ratio suggests that the company has the capacity to cover its current liabilities with its current assets, although there has been some variation in the company's liquidity position over the years.

- The quick ratio, also known as the acid-test ratio, has generally decreased over the years, indicating a declining ability to meet short-term obligations without relying on inventory. The ratio was at its lowest in 2024 at 0.60, indicating a potential challenge in meeting immediate liabilities with liquid assets.

- The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, has also experienced a downward trend over the years. The ratio has decreased from 0.65 in 2020 to 0.34 in 2024, indicating a reduced ability to settle short-term obligations solely with cash on hand.

Overall, O-I Glass Inc's liquidity ratios suggest that while the company has generally been able to meet its short-term obligations, there are some signs of weakening liquidity position over the years, particularly in terms of quick assets and cash reserves. Management may need to closely monitor and potentially enhance the company's liquidity management strategies to ensure financial stability in the face of changing market conditions.

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Additional liquidity measure

The cash conversion cycle of O-I Glass Inc has shown a decreasing trend over the years, indicating an improvement in the company's efficiency in managing its cash flow.

As of December 31, 2020, the cash conversion cycle was 19.25 days, which decreased to 16.47 days by December 31, 2021. This signifies that the company was able to convert its resources into cash more quickly.

By December 31, 2022, the cash conversion cycle further decreased to 12.03 days, suggesting that O-I Glass Inc was able to convert its investments in inventory and receivables into cash at a faster rate.

The trend continued in the following years, with the cash conversion cycle reaching 10.65 days by December 31, 2023, reflecting the company's effective management of working capital.

However, there was a slight increase in the cash conversion cycle to 20.06 days by December 31, 2024, which may warrant further investigation to understand the factors contributing to this change.

Overall, the decreasing trend in the cash conversion cycle showcases O-I Glass Inc's efforts in optimizing its cash flow operations and working capital management over the years.