O-I Glass Inc (OI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 913,000 | 792,000 | 754,000 | 480,000 | 773,000 | 523,000 | 661,000 | 519,000 | 725,000 | 628,000 | 531,000 | 742,000 | 563,000 | 606,000 | 1,067,000 | 891,000 | 551,000 | 273,000 | 371,000 | 326,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 673,000 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,346,000 | 2,070,000 | 2,131,000 | 2,255,000 | 2,357,000 | 2,096,000 | 1,785,000 | 1,750,000 | 1,846,000 | 1,738,000 | 1,687,000 | 1,702,000 | 1,898,000 | 1,697,000 | 1,886,000 | 1,824,000 | 1,995,000 | 2,195,000 | 1,929,000 | 1,860,000 |
| Cash ratio | 0.39 | 0.38 | 0.35 | 0.21 | 0.33 | 0.25 | 0.37 | 0.30 | 0.39 | 0.36 | 0.31 | 0.44 | 0.65 | 0.36 | 0.57 | 0.49 | 0.28 | 0.12 | 0.19 | 0.18 |
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 shown a fluctuating trend over the past few quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. Generally, a higher cash ratio indicates a stronger liquidity position.
Looking at the historical data provided, the cash ratio has ranged from a low of 0.12 to a high of 0.65. The ratio was relatively stable around 0.3 to 0.4 in the earlier periods, indicating a moderate level of liquidity. However, in more recent quarters, there has been increased variability in the cash ratio, with values as low as 0.21 and as high as 0.49.
A cash ratio below 1 may suggest that the company may have difficulties meeting its short-term obligations solely from its available cash. A ratio above 1 would indicate that the company holds more cash and equivalents than its short-term liabilities require.
Overall, while the company's cash ratio has shown some volatility, it is important to monitor this trend closely to ensure that O-I Glass Inc maintains a healthy liquidity position to meet its financial obligations.