O-I Glass Inc (OI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 913,000 | 773,000 | 725,000 | 563,000 | 551,000 |
| Short-term investments | US$ in thousands | — | — | — | 673,000 | — |
| Total current liabilities | US$ in thousands | 2,346,000 | 2,357,000 | 1,846,000 | 1,898,000 | 1,995,000 |
| Cash ratio | 0.39 | 0.33 | 0.39 | 0.65 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($913,000K
+ $—K)
÷ $2,346,000K
= 0.39
The cash ratio of O-I Glass Inc has fluctuated over the past five years, ranging from 0.28 in 2019 to 0.65 in 2020. The ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A cash ratio of 0.39 in 2021 and 2023 indicates that the company has $0.39 in cash and cash equivalents for every $1 of current liabilities, signaling moderate liquidity. The improvement in the cash ratio from 2022 to 2023 suggests an enhanced ability to meet short-term obligations using cash resources. Overall, the company's cash ratio trend reflects a reasonable level of liquidity management, although further analysis of additional liquidity metrics may provide a more comprehensive understanding of its financial health.