Organon & Co (OGN)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,263,000 | 6,150,000 | 6,168,000 | 6,145,000 | 6,174,000 | 6,292,000 | 6,355,000 | 6,365,000 | 6,304,000 | |||
| Property, plant and equipment | US$ in thousands | 1,183,000 | 1,096,000 | 1,110,000 | 1,055,000 | 1,018,000 | 906,000 | 952,000 | 970,000 | 973,000 | 967,000 | 976,000 | 986,000 |
| Fixed asset turnover | 5.29 | 5.61 | 5.56 | 5.82 | 6.06 | 6.94 | 6.68 | 6.56 | 6.48 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,263,000K ÷ $1,183,000K
= 5.29
The fixed asset turnover of Organon & Co. has been showing a decreasing trend over the past few quarters, with a noticeable decline from 6.94 in Q3 2022 to 5.29 in Q4 2023. This indicates that the company is generating less revenue from its fixed assets in recent periods.
The fluctuations in fixed asset turnover may suggest changes in the efficiency of utilizing assets to generate sales or variations in sales volume relative to the value of fixed assets. A higher fixed asset turnover ratio generally signifies that the company is effectively utilizing its fixed assets to generate revenue.
It is crucial for Organon & Co. to assess the reasons behind the declining trend in fixed asset turnover and implement strategies to improve asset utilization efficiency. This could involve optimizing operational processes, investing in productive assets, or reviewing the sales strategy to enhance revenue generation from existing fixed assets. Periodic monitoring and analysis of the fixed asset turnover ratio will provide insight into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023