Organon & Co (OGN)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 693,000 | 414,000 | 326,000 | 459,000 | 706,000 | 499,000 | 545,000 | 694,000 | 737,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.24 | 0.17 | 0.14 | 0.20 | 0.28 | 0.21 | 0.23 | 0.30 | 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 been relatively stable over the past eight quarters, ranging from 0.46 to 0.63. The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations without relying on external sources of funding.
In this case, Organon & Co. has maintained a moderate level of liquidity throughout the quarters, with the ratio fluctuating within a relatively narrow range. While the cash ratio decreased from Q4 2022 to Q2 2023, it rebounded slightly in Q4 2023. This indicates that the company has a sufficient amount of cash to cover its short-term liabilities, although there may have been some fluctuations in cash holdings and short-term obligations over the period analyzed.
Overall, the cash ratio analysis suggests that Organon & Co. has managed its liquidity effectively, maintaining a reasonable level of cash reserves to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023