O-I Glass Inc (OI)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.58 | 64.93 | 60.79 | 60.25 | 50.04 | 47.24 | 46.66 | 51.10 | 51.09 | 51.24 | 50.34 | 52.86 | 53.26 | 48.78 | 61.75 | 62.68 | 62.09 | 55.95 | 57.02 | 59.82 |
| Days of sales outstanding (DSO) | days | 36.24 | 41.27 | 53.31 | 54.34 | 41.94 | 49.62 | 53.80 | 51.56 | 41.16 | 47.84 | 49.33 | 43.17 | 37.29 | 42.66 | 42.74 | 44.35 | 35.56 | 55.08 | 70.89 | 51.55 |
| Number of days of payables | days | 85.31 | 73.92 | 77.39 | 77.10 | 79.95 | 69.84 | 71.65 | 71.38 | 75.75 | 67.34 | 65.65 | 63.78 | 71.32 | 56.77 | 56.33 | 61.36 | 75.82 | 58.65 | 60.34 | 61.38 |
| Cash conversion cycle | days | 14.51 | 32.29 | 36.72 | 37.49 | 12.03 | 27.01 | 28.81 | 31.29 | 16.49 | 31.74 | 34.03 | 32.24 | 19.24 | 34.68 | 48.15 | 45.66 | 21.83 | 52.38 | 67.57 | 49.99 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 63.58 + 36.24 – 85.31
= 14.51
The cash conversion cycle of O-I Glass Inc has varied over the past years, ranging from as low as 12.03 days to as high as 67.57 days. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
A lower cash conversion cycle indicates that the company is efficiently managing its working capital by quickly converting its resources into cash. On the other hand, a higher cash conversion cycle may suggest inefficiencies in the company's operations, such as slow inventory turnover or longer collection periods for accounts receivable.
In analyzing O-I Glass Inc's cash conversion cycle data, we observe fluctuations over time, indicating potential changes in the company's operational efficiency and liquidity management. For instance, the company experienced a significant increase in its cash conversion cycle from March 2020 to March 2021, which may signal a delay in converting investments into cash during that period. Conversely, the company showed improved efficiency with a lower cash conversion cycle in December 2020 compared to December 2019.
Overall, monitoring the cash conversion cycle trend of O-I Glass Inc can provide insights into its working capital management, operational performance, and potential liquidity risks.