Organon & Co (OGN)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,586,000 | 4,457,000 | 4,309,000 | 4,229,000 | 4,142,000 | 4,136,000 | 4,132,000 | 4,121,000 | 4,163,000 | |||
| Inventory | US$ in thousands | 1,315,000 | 1,186,000 | 1,199,000 | 1,121,000 | 1,003,000 | 879,000 | 950,000 | 946,000 | 915,000 | 918,000 | 871,000 | 924,000 |
| Inventory turnover | 3.49 | 3.76 | 3.59 | 3.77 | 4.13 | 4.71 | 4.35 | 4.36 | 4.55 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,586,000K ÷ $1,315,000K
= 3.49
The inventory turnover of Organon & Co. has shown a declining trend over the past four quarters. In Q1 2022, the inventory turnover was at its peak at 2.49, but since then, it has been decreasing gradually to 1.91 in Q4 2023.
This indicates that the company is taking longer to sell its inventory relative to previous quarters. A lower inventory turnover ratio may suggest overstocking, slow-moving inventory, or potential inefficiencies in managing inventory levels.
Organon & Co. should closely monitor its inventory turnover and assess its inventory management practices to ensure optimal utilization of resources and maximize profitability. Further analysis and corrective actions may be necessary to improve the efficiency of inventory turnover and overall operational performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023