O-I Glass Inc (OI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.00% | 21.06% | 18.34% | 17.77% | 15.94% |
| Operating profit margin | 0.58% | 0.94% | 12.17% | 5.41% | 5.79% |
| Pretax margin | 0.31% | 0.69% | 11.52% | 5.15% | 5.54% |
| Net profit margin | -1.62% | -1.45% | 8.83% | 2.43% | 4.08% |
O-I Glass Inc's profitability ratios exhibit varying trends over the period from 2020 to 2024.
1. Gross Profit Margin: The company's gross profit margin improved from 15.94% in 2020 to 21.06% in 2023, indicating a better ability to generate profit after accounting for the cost of goods sold. However, there was a slight decline to 16.00% in 2024.
2. Operating Profit Margin: O-I Glass Inc's operating profit margin experienced fluctuations, with a significant increase from 5.79% in 2020 to 12.17% in 2022, followed by a sharp decline to 0.58% in 2024. This suggests fluctuations in the company's ability to control operating expenses and generate profits from its core operations.
3. Pretax Margin: The pretax margin also showed variability, rising from 5.54% in 2020 to 11.52% in 2022 before falling to 0.31% in 2024. This indicates fluctuations in the company's profitability before accounting for taxes.
4. Net Profit Margin: O-I Glass Inc's net profit margin experienced significant fluctuations as well, with a decrease from 4.08% in 2020 to -1.62% in 2024. Negative net profit margins in 2023 and 2024 indicate that the company's expenses exceeded its revenue in those years.
Overall, the company's profitability ratios demonstrate mixed performance, with fluctuations in margins over the years. It is essential for O-I Glass Inc to closely monitor and manage its cost structures and revenue streams to ensure sustainable profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.44% | 0.69% | 8.88% | 3.76% | 3.97% |
| Return on assets (ROA) | -1.22% | -1.07% | 6.45% | 1.69% | 2.80% |
| Return on total capital | 6.30% | 6.20% | 17.29% | 9.72% | 11.50% |
| Return on equity (ROE) | -9.82% | -6.40% | 41.21% | 20.69% | 83.84% |
O-I Glass Inc's profitability ratios exhibit fluctuations over the years.
1. Operating return on assets (Operating ROA):
- The Operating ROA shows a mixed performance, declining from 3.97% in 2020 to 0.44% in 2024, with a significant peak of 8.88% in 2022. This ratio assesses the company's operating efficiency in generating profits from its assets.
2. Return on assets (ROA):
- The overall ROA trend also fluctuates, with values ranging from positive to negative. ROA decreased from 2.80% in 2020 to -1.22% in 2024. A negative ROA may indicate that the company's assets are not generating profits efficiently.
3. Return on total capital:
- O-I Glass Inc's return on total capital declined from 11.50% in 2020 to 6.30% in 2024. This ratio evaluates the company’s ability to generate returns from both equity and debt capital invested in the business.
4. Return on equity (ROE):
- The ROE trend mirrors the overall decline in profitability, dropping from 83.84% in 2020 to -9.82% in 2024. A negative ROE suggests that the company is not generating returns for its shareholders.
In summary, O-I Glass Inc's profitability ratios show a varied performance over the years, with declines in some key metrics indicating challenges in efficiently utilizing assets and generating profits for both creditors and shareholders. Management may need to focus on improving operational efficiency and financial performance to enhance overall profitability.