Organon & Co (OGN)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,403,000 | 6,409,000 | 6,346,000 | 6,347,000 | 6,263,000 | 6,150,000 | 6,168,000 | 6,145,000 | 6,174,000 | 6,293,000 | 6,356,000 | 6,366,000 | 6,305,000 | 7,878,000 | 7,891,000 | 7,822,000 | 8,096,000 |
| Total current assets | US$ in thousands | 4,348,000 | 4,756,000 | 4,509,000 | 4,196,000 | 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 | 3,434,000 |
| Total current liabilities | US$ in thousands | 2,718,000 | 2,790,000 | 2,755,000 | 2,545,000 | 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 | 1,201,000 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,403,000K ÷ ($4,348,000K – $2,718,000K)
= 3.93
Organon & Co's working capital turnover ratio has exhibited fluctuations over the past few years. The ratio decreased from 3.63 on December 31, 2020, to its lowest point of 3.26 on September 30, 2024, before rebounding to 3.93 on December 31, 2024.
This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio is generally preferred as it suggests that the company is efficiently managing its working capital. The significant variability in Organon & Co's working capital turnover ratio highlights potential inefficiencies or changes in the company's operations over the period analyzed.
Organon & Co should further investigate the reasons behind these fluctuations to ensure optimal management of its working capital and enhance its overall financial performance. Additional analysis of the company's operating activities and cash flow management may shed light on the factors influencing these changes in the working capital turnover ratio.
Peer comparison
Dec 31, 2024