Organon & Co (OGN)
Payables 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 | |||
| Payables | US$ in thousands | 1,314,000 | 1,067,000 | 1,115,000 | 996,000 | 1,132,000 | 1,028,000 | 1,130,000 | 1,081,000 | 1,382,000 | 1,673,000 | 1,812,000 | 264,000 |
| Payables turnover | 3.49 | 4.18 | 3.86 | 4.25 | 3.66 | 4.02 | 3.66 | 3.81 | 3.01 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,586,000K ÷ $1,314,000K
= 3.49
Organon & Co.'s payables turnover ratio has shown fluctuation over the past eight quarters. The ratio indicates how efficiently the company is managing its trade payables by measuring the number of times it pays off its suppliers within a given period.
In Q4 2023, the payables turnover ratio was 1.91, which represents a decrease from the previous quarter. This suggests that the company took longer to settle its trade payables compared to Q3 2023. However, despite the decrease, the ratio was still higher than in Q4 2022, indicating an improvement in payables management compared to the same period in the previous year.
Overall, the trend in payables turnover over the past eight quarters shows some variability, but generally, the company has been able to efficiently manage its trade payables, with the ratio typically above 2. Maintaining a healthy payables turnover ratio is essential for cash flow management and maintaining good relationships with suppliers.
Peer comparison
Dec 31, 2023