O-I Glass Inc (OI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 38,000 | 67,000 | 805,000 | 332,000 | 353,000 |
| Total assets | US$ in thousands | 8,654,000 | 9,669,000 | 9,061,000 | 8,832,000 | 8,882,000 |
| Operating ROA | 0.44% | 0.69% | 8.88% | 3.76% | 3.97% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $38,000K ÷ $8,654,000K
= 0.44%
Based on the provided data for O-I Glass Inc's Operating ROA from December 31, 2020, to December 31, 2024, we observe fluctuations in the company's operating performance efficiency.
In December 31, 2020, the operating ROA was 3.97%, reflecting the company's ability to generate operating income from its assets. This ratio declined slightly to 3.76% by the end of December 31, 2021, indicating a marginal decrease in profitability relative to its asset base.
However, there was a significant improvement in operating ROA to 8.88% by December 31, 2022, suggesting a substantial increase in operating income relative to assets. This improvement may indicate enhanced operational efficiency or strategic decisions that positively impacted profitability.
Subsequently, there was a notable decline in operating ROA to 0.69% by December 31, 2023, signaling a considerable drop in operating income generated from the company's assets. This decrease could be indicative of challenges faced by the company during this period that impacted its profitability.
By the end of December 31, 2024, the operating ROA further decreased to 0.44%, emphasizing continued challenges in generating operating income from assets. This decline may prompt further examination into the company's operational efficiency, asset utilization, and overall financial performance.
In conclusion, the fluctuations in O-I Glass Inc's Operating ROA over the period highlight the importance of monitoring and analyzing this metric as it provides insights into the company's profitability relative to its asset base.