Organon & Co (OGN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 693,000 | 706,000 | 737,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 2,918,000 | 2,512,000 | 2,597,000 |
| Cash ratio | 0.24 | 0.28 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($693,000K
+ $—K)
÷ $2,918,000K
= 0.24
The cash ratio of Organon & Co. has exhibited a declining trend over the past five years, starting at 1.05 in 2019 and decreasing to 0.50 in 2023. This indicates that the company's ability to cover its short-term liabilities solely with cash has weakened over the period under review. While a decrease in the cash ratio may suggest a potential liquidity concern, it is important to assess this ratio in conjunction with other liquidity and financial metrics to garner a more comprehensive understanding of the company's financial health and liquidity position. Further analysis would be needed to determine the underlying reasons for the downward trend in the cash ratio and its implications for Organon & Co.'s overall financial stability.
Peer comparison
Dec 31, 2023