O-I Glass Inc (OI)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,669,000 | 9,735,000 | 9,911,000 | 9,425,000 | 9,061,000 | 8,644,000 | 8,873,000 | 8,877,000 | 8,832,000 | 8,766,000 | 8,874,000 | 8,825,000 | 8,882,000 | 8,624,000 | 9,579,000 | 9,504,000 | 9,610,000 | 9,548,000 | 10,723,000 | 10,152,000 |
| 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 |
| Financial leverage ratio | 6.01 | 8.19 | 7.74 | 8.41 | 6.39 | 10.80 | 6.84 | 7.74 | 12.27 | 18.85 | 21.97 | 40.11 | 29.91 | 221.13 | — | — | 20.58 | — | 20.35 | 13.05 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,669,000K ÷ $1,609,000K
= 6.01
The financial leverage ratio of O-I Glass Inc has shown significant fluctuations over the past few quarters. The ratio stood at 6.01 as of December 31, 2023, indicating that the company was utilizing moderate financial leverage at that time. However, there was a notable increase in the ratio in the following quarters, reaching 8.19 by September 30, 2023, and further rising to 8.41 by March 31, 2023.
The trend suggests that the company's level of financial leverage has been increasing, potentially indicating a higher reliance on debt financing to fund its operations and investments. The spike in the financial leverage ratio from December 2022 to March 2023, where it reached 40.11, is particularly noteworthy and may raise concerns about the company's debt levels and associated risks.
Furthermore, the financial leverage ratio has shown significant volatility, with fluctuations in a wide range from 6.01 to 221.13 over the past quarters. The sharp increase and variability in the ratio suggest that O-I Glass Inc's capital structure may have undergone significant changes, impacting its financial risk profile and stability.
Overall, a detailed analysis of the company's financial leverage ratio indicates a trend of increasing leverage and volatility, emphasizing the importance of closely monitoring O-I Glass Inc's debt levels and financial risk management strategies in the future.