O-I Glass Inc (OI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 734,000 | 913,000 | 773,000 | 725,000 | 563,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 673,000 |
| Receivables | US$ in thousands | 572,000 | 671,000 | 760,000 | 692,000 | 623,000 |
| Total current liabilities | US$ in thousands | 2,160,000 | 2,346,000 | 2,357,000 | 1,846,000 | 1,898,000 |
| Quick ratio | 0.60 | 0.68 | 0.65 | 0.77 | 0.98 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($734,000K
+ $—K
+ $572,000K)
÷ $2,160,000K
= 0.60
The quick ratio of O-I Glass Inc has shown a declining trend over the past five years. As of December 31, 2020, the quick ratio was at 0.98, indicating a comfortable level of liquidity to cover short-term obligations. However, by December 31, 2024, the quick ratio decreased to 0.60, suggesting a decrease in the company's ability to meet its short-term financial obligations using its most liquid assets.
A quick ratio below 1.0 generally indicates that the company may have difficulty meeting its short-term liabilities with its current quick assets. The declining trend in the quick ratio raises concerns about the company's liquidity position and its ability to weather potential cash flow challenges in the short term.
It would be advisable for stakeholders to further investigate the reasons behind the decreasing quick ratio and assess the effectiveness of O-I Glass Inc's liquidity management strategies to ensure the company's financial stability and ability to meet its short-term obligations.