O-I Glass Inc (OI)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,698,000 | 4,754,000 | 4,778,000 | 4,422,000 | 4,371,000 | 4,280,000 | 4,427,000 | 4,621,000 | 4,753,000 | 4,853,000 | 4,977,000 | 5,168,000 | 4,945,000 | 5,163,000 | 6,103,000 | 6,115,000 | 5,435,000 | 5,512,000 | 6,235,000 | 5,820,000 |
| Total stockholders’ equity | US$ in thousands | 1,609,000 | 1,188,000 | 1,281,000 | 1,121,000 | 1,417,000 | 800,000 | 1,297,000 | 1,147,000 | 720,000 | 465,000 | 404,000 | 220,000 | 297,000 | 39,000 | -155,000 | -8,000 | 467,000 | -103,000 | 527,000 | 778,000 |
| Debt-to-capital ratio | 0.74 | 0.80 | 0.79 | 0.80 | 0.76 | 0.84 | 0.77 | 0.80 | 0.87 | 0.91 | 0.92 | 0.96 | 0.94 | 0.99 | 1.03 | 1.00 | 0.92 | 1.02 | 0.92 | 0.88 |
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 for O-I Glass Inc has shown fluctuations over the past five years, ranging from 0.74 to 1.03. A higher debt-to-capital ratio indicates that a company relies more on debt financing than equity financing to support its operations and growth.
In the most recent period, as of December 31, 2023, the debt-to-capital ratio stands at 0.74, which suggests that the company has reduced its debt levels in relation to its total capital. This could indicate improved financial stability and reduced financial risk.
Looking at the trend over the past quarters, there was a slight increase in the ratio from the second half of 2021 to mid-2022, reaching a peak of 0.99 in September 2021. Subsequently, there was a gradual decline in the ratio until the end of 2023, indicating a potential shift towards a more balanced capital structure with lower reliance on debt.
Overall, the downward trend in the debt-to-capital ratio for O-I Glass Inc signals a positive direction in terms of managing its debt levels and capital structure, potentially leading to a healthier financial position in the long term.