O-I Glass Inc (OI)
Debt-to-equity 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-equity ratio | 2.92 | 3.08 | 6.60 | 16.65 | 11.64 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,698,000K ÷ $1,609,000K
= 2.92
The debt-to-equity ratio of O-I Glass Inc has fluctuated over the past five years. In 2023, the ratio stands at 2.92, showing a decrease from 3.08 in 2022. This suggests that the company has reduced its reliance on debt compared to the previous year. However, when compared to earlier years, such as 2021, where the ratio was 6.60, and 2020, where it was 16.65, the current ratio indicates a significant improvement in the company's debt management.
It is noteworthy that the ratio was relatively stable around the 11-16 range in 2019 and 2020 but then decreased in 2021 and further in 2023. This downward trend in the debt-to-equity ratio could indicate that O-I Glass Inc has been actively working to strengthen its financial position by decreasing its debt levels relative to equity. Overall, a declining trend in the debt-to-equity ratio is generally viewed positively by investors and creditors as it signifies a lower level of financial risk and increased solvency for the company.