Organon & Co (OGN)
Total asset 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,263,000 | 6,150,000 | 6,168,000 | 6,145,000 | 6,174,000 | 6,292,000 | 6,355,000 | 6,365,000 | 6,304,000 |
| Total assets | US$ in thousands | 12,058,000 | 11,012,000 | 10,979,000 | 10,763,000 | 10,955,000 | 10,437,000 | 10,614,000 | 10,597,000 | 10,681,000 |
| Total asset turnover | 0.52 | 0.56 | 0.56 | 0.57 | 0.56 | 0.60 | 0.60 | 0.60 | 0.59 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $6,263,000K ÷ $12,058,000K
= 0.52
The total asset turnover of Organon & Co. has shown a declining trend over the past few quarters, starting at 0.60 in Q1 2022 and steadily decreasing to 0.52 in Q4 2023. This indicates that the company is generating less revenue relative to its total assets in recent quarters compared to the previous year. A total asset turnover below 1 suggests that Organon & Co. is not efficiently utilizing its assets to generate sales.
It is important for the company to closely monitor and potentially improve its asset management strategies to enhance efficiency and profitability. Additionally, a sustained low total asset turnover ratio may raise concerns among investors and creditors regarding the company's operational effectiveness and financial health. Further analysis of the underlying reasons for this declining trend is recommended to identify potential areas of improvement.
Peer comparison
Dec 31, 2023