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.