O-I Glass Inc (OI)

The solvency ratios of O-I Glass Inc over the past five years indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio measures the proportion of total assets financed by debt. O-I Glass Inc has shown a relatively stable debt-to-assets ratio, ranging from 0.49 to 0.57 over the period. This suggests that the company has been able to maintain a prudent level of debt relative to its total assets.

2. Debt-to-capital ratio: This ratio shows the extent to which a company's operations are funded by debt. O-I Glass Inc has seen a declining trend in its debt-to-capital ratio, decreasing from 0.94 in 2020 to 0.74 in 2023. This indicates that the company has been reducing its reliance on debt to fund its operations and investments.

3. Debt-to-equity ratio: This ratio reflects the amount of debt financing relative to equity financing. O-I Glass Inc's debt-to-equity ratio has fluctuated significantly over the period, ranging from 2.92 to 16.65. The downward trend in recent years indicates that the company has been improving its capital structure by decreasing its reliance on debt.

4. Financial leverage ratio: This ratio measures the extent to which a company uses debt to finance its operations and investments. O-I Glass Inc's financial leverage ratio has also shown a decreasing trend, dropping from 29.91 in 2020 to 6.01 in 2023. This indicates that the company has been reducing its financial risk by decreasing its dependence on debt.

Overall, O-I Glass Inc's solvency ratios demonstrate a prudent approach to managing its long-term financial obligations, with a focus on reducing debt levels and improving its capital structure in recent years.

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Coverage ratios

The interest coverage ratio of O-I Glass Inc has shown fluctuations over the past five years. In 2023, the interest coverage ratio decreased to 1.14 from 4.19 in 2022, indicating a decline in the company's ability to cover its interest expenses with operating profits. This may raise concerns about the company's financial stability and its ability to meet its debt obligations.

Comparing the ratios to previous years, O-I Glass Inc had a relatively stronger interest coverage in 2022 and 2021, with ratios of 4.19 and 2.46, respectively. However, the ratio decreased in 2020 to 2.28 and was significantly low in 2019 at 0.09, indicating a potential struggle to cover interest payments with earnings during those periods.

Overall, the downward trend in the interest coverage ratio of O-I Glass Inc suggests a deterioration in its financial leverage and profitability, which could impact the company's ability to service its debt in the long run. Further analysis and monitoring of the company's financial performance and debt management strategies may be necessary to assess its financial health accurately.