Organon & Co (OGN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.03 | 1.93 | 2.04 | 2.06 | 1.91 | 2.05 | 1.97 | 2.06 | 2.29 | 2.62 | 2.48 | 2.49 | 2.60 | 3.92 | 4.04 | 3.68 | 3.67 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.93 | 3.26 | 3.62 | 3.84 | 3.94 | 3.94 | 3.93 | 4.29 | 4.35 | 4.98 | 4.61 | 4.51 | 5.42 | 6.56 | 8.43 | 76.69 | 3.63 |
Based on the provided data, here is a detailed analysis of Organon & Co's activity ratios:
1. Inventory Turnover:
- Organon & Co's inventory turnover ratio has shown a declining trend from December 2020 to December 2024. The company's ability to sell its inventory has decreased over this period.
- The ratio ranged from a high of 4.04 in June 2021 to a low of 1.91 in December 2023, with a slight improvement to 2.03 by December 2024.
- A lower inventory turnover ratio indicates that Organon & Co is taking a longer time to turn its inventory into sales, which may lead to excess inventory and storage costs.
2. Receivables Turnover:
- The receivables turnover ratio data is missing for all periods provided, suggesting that information on how quickly Organon & Co collects its accounts receivable is not available.
3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is not available for the periods provided, making it challenging to assess how quickly the company pays its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company generates revenue from its working capital. Organon & Co's working capital turnover has shown a decreasing trend from March 2021 to December 2024.
- The ratio decreased from a high of 76.69 in March 2021 to 3.93 by December 2024, indicating a declining efficiency in generating revenue from the company's working capital over time.
- A lower working capital turnover ratio suggests that Organon & Co may be less efficient in utilizing its working capital to generate sales and revenue.
In summary, Organon & Co's activity ratios reveal varying levels of efficiency in managing its inventory, working capital, and potentially its receivables and payables. The declining trends in inventory turnover and working capital turnover highlight areas where the company may need to focus on improving operational efficiency and managing its resources effectively to enhance overall performance.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 179.38 | 188.71 | 178.75 | 177.31 | 190.84 | 178.44 | 185.05 | 176.90 | 159.59 | 139.55 | 147.11 | 146.81 | 140.21 | 93.15 | 90.24 | 99.19 | 99.57 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for Organon & Co have shown a fluctuating trend over the reported periods, ranging from around 90 to 190 days. The figures indicate the average number of days it takes for the company to sell its inventory. An increasing trend in DOH suggests that the company may be facing challenges in managing its inventory levels efficiently, possibly leading to higher carrying costs or obsolete inventory.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis, as indicated by the absence of values for these ratios across all reporting periods. The lack of information on DSO and payables days limits our ability to assess the efficiency of the company's accounts receivable and accounts payable management practices.
In conclusion, while the inventory management performance of Organon & Co, as reflected in the DOH ratios, fluctuates over time, the absence of data on DSO and payables days restricts a comprehensive evaluation of the company's overall liquidity and operational efficiency.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 5.61 | 5.56 | 5.82 | 5.01 | 6.95 | 6.68 | 6.56 | 6.48 | 8.15 | 6.22 | 7.93 | — |
| Total asset turnover | 0.49 | 0.50 | 0.52 | 0.53 | 0.52 | 0.56 | 0.56 | 0.57 | 0.56 | 0.60 | 0.60 | 0.60 | 0.59 | 0.70 | 0.72 | 0.81 | 0.78 |
The fixed asset turnover ratio measures how efficiently a company uses its fixed assets to generate sales. Organon & Co's fixed asset turnover ratio has shown some fluctuations over the years, ranging from a high of 8.15 in September 2021 to a low of 5.01 in December 2022. The general trend indicates some variability in the company's ability to generate sales using its fixed assets efficiently.
On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from all its assets. Organon & Co's total asset turnover ratio has also exhibited fluctuations, with values ranging from 0.49 in December 2024 to 0.81 in March 2021. The decreasing trend in total asset turnover suggests a decrease in the company's ability to generate sales relative to its total assets over the years.
Overall, the analysis of Organon & Co's long-term activity ratios indicates varying levels of efficiency in utilizing fixed assets to generate sales and a declining trend in the company's overall ability to generate sales from its total assets. Further investigation into the factors driving these fluctuations and trends would be necessary to fully understand the company's operational performance and efficiency.