Organon & Co (OGN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,403,000 | 6,263,000 | 6,174,000 | 6,304,000 | 8,096,000 |
| Total current assets | US$ in thousands | 4,348,000 | 4,508,000 | 3,931,000 | 3,760,000 | 3,434,000 |
| Total current liabilities | US$ in thousands | 2,718,000 | 2,918,000 | 2,512,000 | 2,597,000 | 1,201,000 |
| Working capital turnover | 3.93 | 3.94 | 4.35 | 5.42 | 3.63 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,403,000K ÷ ($4,348,000K – $2,718,000K)
= 3.93
The working capital turnover for Organon & Co has shown variations over the past five years. In December 31, 2020, the working capital turnover was 3.63, indicating that the company generated $3.63 in net sales revenue for every dollar of working capital invested. Subsequently, there was significant improvement in efficiency as the working capital turnover increased to 5.42 by December 31, 2021.
However, in the following years, the working capital turnover decreased to 4.35 by December 31, 2022, and further to 3.94 by December 31, 2023. This decline suggests that the company may not be utilizing its working capital as effectively to generate sales revenue compared to the previous year. In the most recent year, December 31, 2024, the working capital turnover remained relatively stable at 3.93.
Overall, the trend in Organon & Co's working capital turnover indicates fluctuations in the efficiency of the company's management of working capital to generate sales revenue. It may be beneficial for the company to analyze the reasons behind these fluctuations to optimize its working capital utilization and enhance its overall financial performance.
Peer comparison
Dec 31, 2024