Organon & Co (OGN)
Payables 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 |
| Payables | US$ in thousands | 1,314,000 | 1,132,000 | 1,382,000 |
| Payables turnover | 3.49 | 3.67 | 3.01 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,586,000K ÷ $1,314,000K
= 3.49
The payables turnover ratio for Organon & Co. has fluctuated over the past five years. The ratio was 1.91 in 2023, indicating that the company paid its suppliers approximately 1.91 times during the year. This was a slight decrease from 2.03 in 2022 and an increase from 1.72 in 2021.
The significant spike in payables turnover to 8.94 in 2020 suggests that the company paid its suppliers almost 9 times during that year, which may be attributed to various factors such as changes in payment terms or business operations.
Similarly, the high payables turnover of 8.81 in 2019 further highlights the efficient management of accounts payable by the company during that period.
Overall, the trend in payables turnover ratio for Organon & Co. indicates variability in the company's payment practices over the years, with a notable increase in 2020 followed by a more stable range in the subsequent years.
Peer comparison
Dec 31, 2023