O-I Glass Inc (OI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 67,000 | 805,000 | 332,000 | 353,000 | -251,000 |
| Total assets | US$ in thousands | 9,669,000 | 9,061,000 | 8,832,000 | 8,882,000 | 9,610,000 |
| Operating ROA | 0.69% | 8.88% | 3.76% | 3.97% | -2.61% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $67,000K ÷ $9,669,000K
= 0.69%
O-I Glass Inc's operating return on assets (operating ROA) has displayed fluctuations in performance over the past five years. In 2023, the company's operating ROA decreased significantly to 0.69% from 8.88% in 2022. This sharp decline indicates a notable deterioration in the company's ability to generate profits from its operating assets.
Comparing the 2023 operating ROA to historical data, it is evident that O-I Glass Inc's performance in 2023 was the lowest in the past five years. In contrast, the company experienced a strong performance in 2022 with an operating ROA of 8.88%, indicating efficient utilization of assets to generate operating income.
The positive operating ROA figures in 2021 (3.76%) and 2020 (3.97%) reflect O-I Glass Inc's consistent ability to generate profits from its operating assets during those years. However, the negative operating ROA in 2019 (-2.61%) suggests that the company faced challenges in effectively utilizing its assets to generate operating income.
In conclusion, O-I Glass Inc's operating ROA has been volatile over the past five years, with 2023 showing a significant decline in performance compared to previous years. This trend indicates the importance for the company to focus on improving operational efficiency and asset utilization to enhance profitability in the future.