O-I Glass Inc (OI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,654,000 | 9,669,000 | 9,061,000 | 8,832,000 | 8,882,000 |
| Total stockholders’ equity | US$ in thousands | 1,079,000 | 1,609,000 | 1,417,000 | 720,000 | 297,000 |
| Financial leverage ratio | 8.02 | 6.01 | 6.39 | 12.27 | 29.91 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,654,000K ÷ $1,079,000K
= 8.02
O-I Glass Inc's financial leverage ratio has experienced a significant decline over the years, indicating a reduction in the company's reliance on debt to finance its operations. The ratio reduced from 29.91 in December 2020 to 12.27 in December 2021, and continued to decline to 6.39 in December 2022, and then further to 6.01 by December 2023. However, there was a slight increase to 8.02 by December 2024. This trend suggests that O-I Glass Inc has been gradually reducing its debt levels relative to its equity, which may indicate improved financial stability and lower financial risk. It is important to monitor this ratio closely to ensure a healthy balance between debt and equity in the company's capital structure.