Organon & Co (OGN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,586,000 | 4,151,000 | 4,163,000 |
| Inventory | US$ in thousands | 1,315,000 | 1,003,000 | 915,000 |
| Inventory turnover | 3.49 | 4.14 | 4.55 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,586,000K ÷ $1,315,000K
= 3.49
Organon & Co.'s inventory turnover has exhibited fluctuations over the past five years. The trend indicates a general decline in inventory turnover from 2.12 in 2019 to 1.91 in 2023. This may suggest that the company is taking longer to sell its inventory or managing its inventory less efficiently in recent years. A lower inventory turnover ratio could imply potential issues such as overstocking, slow-moving inventory, or challenges in forecasting customer demand. Organon & Co. may need to assess its inventory management practices, streamline its operations, or reassess its product mix to improve inventory turnover and optimize working capital efficiency.
Peer comparison
Dec 31, 2023