Organon & Co (OGN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 6,263,000 | 6,174,000 | 6,304,000 |
| Total current assets | US$ in thousands | 4,508,000 | 3,931,000 | 3,760,000 |
| Total current liabilities | US$ in thousands | 2,918,000 | 2,512,000 | 2,597,000 |
| Working capital turnover | 3.94 | 4.35 | 5.42 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,263,000K ÷ ($4,508,000K – $2,918,000K)
= 3.94
The working capital turnover ratio for Organon & Co. has displayed some fluctuation over the past five years. The ratio was 3.94 in 2023, decreasing from 4.35 in 2022 and 5.42 in 2021. This indicates that the company generated $3.94 in sales revenue for every dollar of working capital in 2023.
In 2020, the ratio was 2.96, showing a lower efficiency in utilizing working capital to generate sales compared to the previous years. However, there was a slight improvement in 2019 with a ratio of 2.98.
Overall, although there is some variability, the trend suggests that the company has generally been effective in leveraging its working capital to generate sales, with the exception of a slight decline in efficiency in 2023 compared to the previous years. This ratio provides insight into how efficiently the company is managing its working capital to support its sales activities.
Peer comparison
Dec 31, 2023