O-I Glass Inc (OI)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.15 1.23 1.26 1.02 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
Quick ratio 0.60 0.68 0.62 0.46 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
Cash ratio 0.34 0.33 0.30 0.15 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

O-I Glass Inc's liquidity ratios indicate the company's ability to meet its short-term obligations.

The current ratio has been fluctuating over the years but generally remains above 1, indicating that the company has more current assets than current liabilities. However, the ratio has decreased from 1.62 as of March 31, 2020, to 1.15 as of December 31, 2024, suggesting a potential weakening of the company's liquidity position over time.

The quick ratio, which excludes inventory from current assets, also shows a downward trend from 0.93 on June 30, 2020, to 0.60 on December 31, 2024. This may indicate that the company may face difficulty in meeting its short-term obligations without relying on selling inventory.

The cash ratio, which is the most stringent measure of liquidity, reflects a decreasing trend from 0.57 on June 30, 2020, to 0.34 on December 31, 2024. This suggests that O-I Glass Inc's ability to cover current liabilities with cash and cash equivalents has weakened over the years.

Overall, the declining trend in all three liquidity ratios raises concerns about O-I Glass Inc's liquidity position and the company may need to focus on managing its short-term liquidity to ensure financial stability.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 21.87 42.16 42.52 47.35 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

O-I Glass Inc's cash conversion cycle, which represents the time it takes for the company to convert its resources into cash flows, has shown some fluctuation over the years based on the provided data.

The cash conversion cycle for O-I Glass Inc started at a relatively high level of 45.66 days on March 31, 2020, indicating the time taken to transform inputs into cash was lengthy. However, there was an improvement seen by June 30, 2020, as the cycle reduced to 48.15 days. The trend continued positively as of September 30, 2020, at 34.68 days and December 31, 2020, at 19.24 days.

The company managed to reduce its cash conversion cycle further to 16.49 days by December 31, 2021, showcasing a more efficient management of working capital. The cycle slightly increased to 37.49 days by March 31, 2023, possibly due to operational changes or external factors impacting the business.

As of December 31, 2024, the cash conversion cycle stood at 21.87 days, indicating that O-I Glass Inc continued to efficiently manage its working capital to convert investments into cash in a shorter period.

Overall, the fluctuation in O-I Glass Inc's cash conversion cycle reflects the company's ability to effectively manage its working capital, optimize inventory levels, and collect receivables efficiently, which are crucial aspects for maintaining healthy cash flows in the business.