O-I Glass Inc (OI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.13% | 18.34% | 17.77% | 15.94% | 18.95% |
| Operating profit margin | 0.99% | 12.17% | 5.41% | 5.79% | -3.94% |
| Pretax margin | 0.72% | 11.52% | 5.15% | 5.54% | -4.42% |
| Net profit margin | -1.52% | 8.83% | 2.43% | 4.08% | -6.27% |
O-I Glass Inc's profitability ratios over the past five years show fluctuations in its performance.
1. Gross Profit Margin: There has been a fluctuating trend in the gross profit margin, with a notable increase from 15.94% in 2020 to 22.13% in 2023. This highlights the company's ability to control its production costs and generate profit from its sales.
2. Operating Profit Margin: The operating profit margin has experienced significant variability, with a sharp decline to 0.99% in 2023 from 12.17% in 2022. This indicates challenges in managing operating expenses relative to revenues.
3. Pretax Margin: The pretax margin also shows fluctuations, with a decrease to 0.72% in 2023 from 11.52% in 2022. This suggests changes in the company's ability to generate profit before accounting for taxes.
4. Net Profit Margin: The net profit margin has been negative in 2021 and 2023, indicating that the company incurred losses relative to its revenue during those periods. However, there was an improvement in 2022 compared to the negative margin in 2019, suggesting some progress in managing expenses and generating net income.
Overall, O-I Glass Inc's profitability ratios reflect a mixed performance, with improvements in gross profit margin but challenges in operating and net profit margins. The company may need to focus on cost management and operational efficiency to enhance its overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.69% | 8.88% | 3.76% | 3.97% | -2.61% |
| Return on assets (ROA) | -1.07% | 6.45% | 1.69% | 2.80% | -4.16% |
| Return on total capital | 6.20% | 17.29% | 9.72% | 11.50% | 0.49% |
| Return on equity (ROE) | -6.40% | 41.21% | 20.69% | 83.84% | -85.65% |
O-I Glass Inc's profitability ratios exhibit fluctuations over the past five years. The Operating return on assets (Operating ROA) shows a declining trend from 2022 to 2023, indicating a decrease in the company's operating efficiency in generating profits from its assets. The Return on assets (ROA) also reflects a negative trend, with a notable decrease in 2023 compared to the previous years. This suggests a decline in the company's overall profitability relative to its total assets.
On the other hand, the Return on total capital has shown variability throughout the years, with a significant increase in 2023 compared to 2022. This metric indicates the company's ability to generate a return from both debt and equity investments. Additionally, the Return on equity (ROE) has experienced substantial fluctuations, with a negative value in 2023, indicating a decline in the company's ability to generate profits from shareholders' equity.
Overall, the profitability ratios of O-I Glass Inc highlight the company's challenges in maintaining consistent profitability and efficiency in utilizing its assets to generate returns for its stakeholders. Further analysis of the company's financial performance and operational strategies may be necessary to address the observed fluctuations in profitability ratios.