O-I Glass Inc (OI)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,698,000 | 4,371,000 | 4,753,000 | 4,945,000 | 5,435,000 |
| Total stockholders’ equity | US$ in thousands | 1,609,000 | 1,417,000 | 720,000 | 297,000 | 467,000 |
| Debt-to-capital ratio | 0.74 | 0.76 | 0.87 | 0.94 | 0.92 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,698,000K ÷ ($4,698,000K + $1,609,000K)
= 0.74
The debt-to-capital ratio of O-I Glass Inc has shown a declining trend over the past five years, decreasing from 0.92 in 2019 to 0.74 in 2023. This indicates that the company has been effectively managing its debt levels relative to its capital structure. A lower debt-to-capital ratio suggests that O-I Glass has relied less on debt to finance its operations and investments compared to its equity.
The decreasing trend in the debt-to-capital ratio could signify that the company has been paying down its debt or leveraging more equity financing. This may result in lower financial risk as the company has reduced its reliance on debt to fund its activities.
Overall, a declining debt-to-capital ratio for O-I Glass Inc indicates a stronger financial position and improved debt management, which may be viewed positively by investors and creditors.