Organon & Co (OGN)

Days of sales outstanding (DSO)

		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
Receivables turnover		3.59	3.73	3.69	4.25	4.19	4.37	4.27	4.81	4.56
DSO	days	101.64	97.81	98.94	85.83	87.20	83.53	85.58	75.81	80.02

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.59
= 101.64

To analyze Organon & Co.'s days of sales outstanding (DSO), we examine the trend over the last eight quarters. DSO measures the average number of days it takes for a company to collect payment after making a sale. A high DSO value indicates that the company is taking longer to collect payments, which could tie up working capital and indicate potential issues with collections.

Looking at the data provided, we observe an increasing trend in DSO from Q1 2022 to Q4 2023. The DSO has increased from 75.81 days in Q1 2022 to 101.64 days in Q4 2023. This suggests that Organon & Co. is now taking longer to collect payments from its customers compared to earlier periods.

The fluctuation in DSO from quarter to quarter indicates variability in the company's collection process. The highest DSO recorded was in Q4 2023 at 101.64 days, while the lowest was in Q1 2022 at 75.81 days. This volatility in DSO could be a sign of inconsistent collection practices or changes in customer payment behavior.

Overall, the increasing trend in DSO for Organon & Co. raises concerns about its liquidity and efficiency in managing receivables. The company may need to review its credit policies, collections process, and customer creditworthiness to improve DSO and maintain a healthy cash flow position.