O-I Glass Inc (OI)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 734,000 913,000 773,000 725,000 563,000
Short-term investments US$ in thousands 673,000
Total current liabilities US$ in thousands 2,160,000 2,346,000 2,357,000 1,846,000 1,898,000
Cash ratio 0.34 0.39 0.33 0.39 0.65

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($734,000K + $—K) ÷ $2,160,000K
= 0.34

The cash ratio of O-I Glass Inc has shown a decreasing trend over the years, declining from 0.65 in December 2020 to 0.34 in December 2024. The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.

A cash ratio of less than 1 suggests that the company may not have enough liquid assets to cover its current liabilities entirely. While a decreasing trend in the cash ratio could indicate a potential liquidity concern, it is essential to consider other factors such as operating cash flows and access to credit lines to assess the company's overall financial health comprehensively.

O-I Glass Inc may need to monitor its cash management strategies carefully and ensure that it maintains an adequate level of liquidity to meet its short-term obligations effectively.