O-I Glass Inc (OI)
Debt-to-equity 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-equity ratio | 2.92 | 4.00 | 3.73 | 3.94 | 3.08 | 5.35 | 3.41 | 4.03 | 6.60 | 10.44 | 12.32 | 23.49 | 16.65 | 132.38 | — | — | 11.64 | — | 11.83 | 7.48 |
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 displayed significant fluctuations over the past few quarters. The ratio was relatively stable around 3 to 4 times from March 2021 to June 2022, indicating a moderate level of leverage. However, there was a sharp increase in the ratio in September 2022, reaching 5.35 times, which further escalated to 132.38 times by September 2020, reflecting a substantial increase in debt relative to equity.
The ratio decreased sharply by December 2020 to 16.65 times, then exhibited irregular movements with peaks in June and September 2021, reaching exceptionally high levels of 12.32 times and 23.49 times, respectively. Subsequently, the ratio dropped significantly by December 2021 to 6.60 times but surged again in the following quarters, peaking at 10.44 times in March 2022.
By September 2023, the debt-to-equity ratio declined to 4.00 times, suggesting a reduction in leverage compared to the peak levels seen in the previous periods. The company's debt-to-equity ratio indicates varying degrees of reliance on debt financing over equity, with fluctuations highlighting changes in the capital structure and financial risk profile of O-I Glass Inc.