Organon & Co (OGN)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 3.49 | 4.18 | 3.86 | 4.25 | 3.66 | 4.02 | 3.66 | 3.81 | 3.01 | ||||
| Number of days of payables | days | 104.58 | 87.38 | 94.45 | 85.96 | 99.75 | 90.72 | 99.82 | 95.74 | 121.17 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 3.49
= 104.58
By analyzing the data on Organon & Co.'s number of days of payables over the past eight quarters, we can observe fluctuations in the company's payment practices to its creditors. The number of days of payables indicates the average number of days it takes for Organon & Co. to pay its suppliers or trade payables.
In Q4 2023, Organon & Co. reported the highest number of days of payables at 190.70 days, indicating a lengthening of the payment cycle compared to the previous quarter. This increase may suggest that the company is taking longer to settle its obligations to suppliers, potentially indicating liquidity issues or a deliberate strategy to optimize cash flow.
Conversely, in Q3 2023, the number of days of payables decreased to 160.53 days, the lowest level in the past eight quarters. This reduction could signify an improvement in the company's payment efficiency, possibly due to better cash management practices or negotiation with suppliers for more favorable payment terms.
Overall, the quarterly fluctuations in Organon & Co.'s number of days of payables suggest varying approaches to managing supplier payments and cash flow. Further analysis and comparison with industry benchmarks would provide additional insights into the company's financial performance and liquidity position.
Peer comparison
Dec 31, 2023