O-I Glass Inc (OI)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 4.22 | 2.92 | 3.08 | 6.60 | 16.65 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,553,000K ÷ $1,079,000K
= 4.22
The debt-to-equity ratio of O-I Glass Inc has shown a significant downward trend over the past five years, declining from 16.65 as of December 31, 2020, to 4.22 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt financing in relation to equity over the period. A lower debt-to-equity ratio generally suggests a lower degree of financial leverage and lower financial risk, which can be seen as positive indicators of the company's financial health and stability. Overall, the decreasing trend in the debt-to-equity ratio for O-I Glass Inc reflects a positive strategic shift towards a more conservative capital structure.