O-I Glass Inc (OI)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.53 0.50 0.50 0.44 0.49 0.49 0.48 0.47 0.48 0.50 0.50 0.52 0.54 0.55 0.56 0.59 0.56 0.60 0.64 0.64
Debt-to-capital ratio 0.81 0.90 0.86 0.81 0.74 0.80 0.79 0.80 0.76 0.84 0.77 0.80 0.87 0.91 0.92 0.96 0.94 0.99 1.03 1.00
Debt-to-equity ratio 4.22 9.38 5.93 4.35 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 — —
Financial leverage ratio 8.02 18.67 11.91 9.95 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 — —

O-I Glass Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio decreased from 0.64 in March 2020 to 0.44 in March 2024. This implies that the company's total debt relative to its total assets has decreased over the period, indicating stronger solvency.

2. Debt-to-capital ratio: The debt-to-capital ratio declined from 1.00 in March 2020 to 0.81 in December 2024. The decreasing trend suggests that the company has been reducing its reliance on debt financing in relation to its total capital, which is a positive sign for solvency.

3. Debt-to-equity ratio: The debt-to-equity ratio dropped significantly from 132.38 in September 2020 to 4.22 in December 2024. This indicates a substantial reduction in the amount of debt relative to equity, reflecting an improved financial position and lower financial risk.

4. Financial leverage ratio: The financial leverage ratio, which measures the company's level of financial leverage, decreased from 221.13 in September 2020 to 8.02 in December 2024. This reduction signifies that the company has been decreasing its reliance on debt to finance its operations, resulting in a stronger solvency position.

Overall, O-I Glass Inc has shown improvement in its solvency position over the years, as indicated by the decreasing trends in its debt-related ratios. This suggests a more stable financial structure and enhanced ability to meet its long-term obligations.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Interest coverage 1.06 0.11 0.52 0.71 1.14 2.59 3.29 4.70 4.18 4.36 3.91 3.26 2.46 2.26 3.31 1.72 2.27 2.26 -0.59 -0.05

The interest coverage ratio of O-I Glass Inc has displayed significant fluctuations over the evaluated period. It started at a very low value, indicating a negative coverage in March 2020 and June 2020, which suggests that the company struggled to meet its interest obligations with its operating income during that time.

However, the situation improved in the subsequent quarters, with the interest coverage ratio turning positive and showing an increasing trend. From September 2020 to June 2022, the company demonstrated a healthy ability to cover its interest expenses with its operating income, with values ranging from 1.72 to 4.36.

There was a slight dip in the interest coverage ratio in the following quarters, although it remained above 2, indicating a reasonable ability to meet interest payments. However, by the end of December 2024, the interest coverage ratio had dropped to 1.06, which might raise concerns about the company's ability to cover its interest expenses solely based on operating income.

Overall, the trend in O-I Glass Inc's interest coverage ratio shows variability but generally improving from negative territory to positive levels, though ending with a lower coverage ratio at the end of the period. It is crucial for investors and stakeholders to monitor this ratio closely to ensure the company's ability to service its debt obligations.