O-I Glass Inc (OI)

Liquidity ratios

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
Current ratio 1.23 1.40 1.42 1.22 1.10 1.16 1.47 1.42 1.36 1.41 1.42 1.46 1.21 1.40 1.60 1.62 1.25 1.15 1.53 1.39
Quick ratio 0.68 0.75 0.82 0.65 0.65 0.68 0.91 0.81 0.77 0.82 0.82 0.86 0.98 0.78 0.93 0.91 0.59 0.57 0.85 0.68
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

Looking at the liquidity ratios of O-I Glass Inc over the past few quarters, we can observe the following trends:

1. Current Ratio: The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. O-I Glass Inc has generally maintained a current ratio above 1, indicating that it has more than enough current assets to cover its current liabilities. However, there has been some fluctuation in the current ratio, with a peak of 1.62 in March 2020 and a low of 1.10 in December 2022. Overall, the current ratio has been relatively stable over the periods analyzed.

2. Quick Ratio: The quick ratio provides a more stringent measure of liquidity as it excludes inventory from current assets. O-I Glass Inc's quick ratio has also fluctuated over the periods, ranging from a low of 0.57 in March 2019 to a high of 0.98 in December 2020. Overall, the quick ratio has shown some variability but has generally improved in recent quarters.

3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, focusing solely on the cash and cash equivalents to cover current liabilities. O-I Glass Inc's cash ratio has varied significantly over the periods, with a low of 0.12 in September 2019 and a high of 0.65 in December 2020. The cash ratio indicates the company's ability to pay off its short-term obligations using only its cash reserves.

In summary, O-I Glass Inc has maintained relatively healthy liquidity ratios, with the current and quick ratios generally above industry norms. The company has shown stability in its ability to meet its short-term obligations, although there have been fluctuations in the cash ratio. This analysis suggests that O-I Glass Inc has a strong liquidity position to navigate its short-term financial commitments.

Additional liquidity measure

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 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

The cash conversion cycle of O-I Glass Inc has fluctuated over the past few quarters. In general, 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.

From the data provided, we can see that the cash conversion cycle for O-I Glass Inc has ranged from as low as 12.03 days to as high as 67.57 days over the past five years. A lower cash conversion cycle indicates that the company is able to quickly convert its investments into cash, which can be a positive sign of efficiency. Conversely, a higher cash conversion cycle may suggest inefficiencies in inventory management or collections processes.

Analyzing the trend, we observe that the cash conversion cycle has generally improved in recent quarters, with periods of lower days recorded in comparison to previous years. This improvement could signify enhanced operational efficiency or better management of working capital.

Overall, a lower and improving cash conversion cycle is typically seen as favorable, as it indicates that O-I Glass Inc is effectively managing its resources and generating cash flows from its operations in a more timely manner.