Organon & Co (OGN)

Days of inventory on hand (DOH)

		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
Inventory turnover		2.03	1.93	2.04	2.06	1.91	2.05	1.97	2.06	2.29	2.62	2.48	2.49	2.60	3.92	4.04	3.68	3.67
DOH	days	179.38	188.71	178.75	177.31	190.84	178.44	185.05	176.90	159.59	139.55	147.11	146.81	140.21	93.15	90.24	99.19	99.57

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.03
= 179.38

The Days of Inventory on Hand (DOH) for Organon & Co have fluctuated over the period from December 31, 2020, to December 31, 2024. The DOH indicates the average number of days the company holds its inventory before selling it.

The trend in DOH shows an initial decrease from 99.57 days on December 31, 2020, to 90.24 days on June 30, 2021, suggesting improved inventory turnover efficiency. However, from December 31, 2021, the trend reverses as the DOH increases significantly to 190.84 days by December 31, 2023. This indicates a potential issue with inventory management efficiency during this period.

The sharp increase in DOH from March 31, 2024, to June 30, 2024, followed by a slight decrease, may indicate some efforts to address the high inventory holding period. However, the DOH remained relatively high at 179.38 days by December 31, 2024.

Overall, a high DOH value may suggest overstocking, slow-moving inventory, or inefficiencies in sales and operations. Organon & Co may need to review its inventory management strategies to optimize inventory levels, reduce holding costs, and improve liquidity.