O-I Glass Inc (OI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 355,000 | 391,000 | 1,001,000 | 532,000 | 603,000 |
| Long-term debt | US$ in thousands | 4,553,000 | 4,698,000 | 4,371,000 | 4,753,000 | 4,945,000 |
| Total stockholders’ equity | US$ in thousands | 1,079,000 | 1,609,000 | 1,417,000 | 720,000 | 297,000 |
| Return on total capital | 6.30% | 6.20% | 17.29% | 9.72% | 11.50% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $355,000K ÷ ($4,553,000K + $1,079,000K)
= 6.30%
The return on total capital for O-I Glass Inc has exhibited some fluctuations over the years as per the provided data. In December 2020, the return on total capital stood at 11.50%, indicating a decent profitability in utilizing the company's total capital. However, this metric declined to 9.72% by December 2021, suggesting a decrease in efficiency in generating returns from the invested capital.
The year 2022 brought a significant improvement in performance, with the return on total capital surging to 17.29%, showcasing a strong rebound and enhanced profitability for the company. Subsequently, in December 2023, the return on total capital dropped notably to 6.20%, signifying a decrease in the company's ability to generate returns relative to the total capital employed.
The latest data point from December 2024 shows a slight increase in the return on total capital to 6.30%, indicating a marginal improvement in efficiency in utilizing total capital compared to the previous period. Overall, the trend in O-I Glass Inc's return on total capital reflects fluctuations in profitability and efficiency in deploying capital over the analyzed period.