Organon & Co (OGN)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 current assets | US$ in thousands | 4,508,000 | 4,050,000 | 3,958,000 | 3,780,000 | 3,931,000 | 3,592,000 | 3,774,000 | 3,719,000 | 3,760,000 | 4,329,000 | 3,911,000 | 2,977,000 |
| Total current liabilities | US$ in thousands | 2,918,000 | 2,491,000 | 2,387,000 | 2,346,000 | 2,512,000 | 2,328,000 | 2,396,000 | 2,306,000 | 2,597,000 | 3,129,000 | 2,975,000 | 2,875,000 |
| Working capital turnover | 3.94 | 3.94 | 3.93 | 4.29 | 4.35 | 4.98 | 4.61 | 4.50 | 5.42 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,263,000K ÷ ($4,508,000K – $2,918,000K)
= 3.94
Organon & Co.'s working capital turnover has exhibited variability over the past eight quarters, ranging from a high of 4.98 in Q3 2022 to a low of 3.93 in Q2 2023. This ratio indicates the efficiency with which the company is utilizing its working capital to generate sales revenue. A higher turnover ratio typically suggests that the company is effectively managing its working capital and efficiently converting it into sales.
The declining trend in the working capital turnover from Q3 2022 to Q2 2023 may indicate that Organon & Co. is taking longer to convert its working capital into sales during this period. However, it is important to note that the working capital turnover ratio in the most recent quarter (Q4 2023) has remained relatively steady at 3.94 compared to the preceding quarters.
Overall, while the fluctuations in the working capital turnover ratio may indicate some variability in the company's efficiency in managing its working capital, further analysis would be required to understand the underlying reasons behind these trends and their potential impact on the company's financial performance.
Peer comparison
Dec 31, 2023