Organon & Co (OGN)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Payables turnover | 3.49 | 3.67 | 3.01 | |
| Number of days of payables | days | 104.58 | 99.54 | 121.17 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 3.49
= 104.58
The number of days of payables for Organon & Co. has shown fluctuations over the past five years. In 2023, the company took an average of 190.70 days to pay off its payables, representing an increase compared to 2022 when it took 180.11 days. This indicates that the company is taking slightly longer to settle its payables in 2023.
In 2021, Organon & Co. had an average payable period of 211.77 days, which was notably higher than in the previous years. This suggests that the company significantly extended its payment cycle in 2021, possibly for strategic reasons such as improving cash flow or negotiating better terms with suppliers.
On the other hand, in 2020 and 2019, Organon & Co. had much shorter payable periods of 40.82 days and 41.41 days, respectively. These low numbers indicate that the company was able to manage its payables efficiently and settle its obligations relatively quickly during those years.
Overall, the trend in Organon & Co.'s number of days of payables demonstrates variability in the company's payment practices over the past five years, reflecting potential shifts in its working capital management strategies and relationships with suppliers.
Peer comparison
Dec 31, 2023