Organon & Co (OGN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 675,000 | 693,000 | 706,000 | 737,000 | 500,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,718,000 | 2,918,000 | 2,512,000 | 2,597,000 | 1,201,000 |
| Cash ratio | 0.25 | 0.24 | 0.28 | 0.28 | 0.42 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($675,000K
+ $—K)
÷ $2,718,000K
= 0.25
The cash ratio of Organon & Co has shown a declining trend over the years, decreasing from 0.42 as of December 31, 2020, to 0.25 as of December 31, 2024. The cash ratio measures a company's ability to cover its short-term obligations with its cash and cash equivalents alone.
A decreasing trend in the cash ratio may indicate that Organon & Co's liquidity position is weakening over time. This could be a cause for concern as a lower cash ratio means the company may have less buffer to cover its current liabilities using its available cash reserves.
It is essential for Organon & Co to closely monitor its cash reserves and liquidity position to ensure that it can meet its short-term obligations. A declining cash ratio may signal the need for the company to reevaluate its cash management practices and potentially take action to improve its liquidity position.
Peer comparison
Dec 31, 2024