Organon & Co (OGN)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 675,000 | 763,000 | 704,000 | 575,000 | 693,000 | 414,000 | 326,000 | 459,000 | 706,000 | 499,000 | 545,000 | 694,000 | 737,000 | 1,008,000 | 730,000 | 141,000 | 500,000 |
| Short-term investments | US$ in thousands | — | -762,237 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.25 | 0.00 | 0.26 | 0.23 | 0.24 | 0.17 | 0.14 | 0.20 | 0.28 | 0.21 | 0.23 | 0.30 | 0.28 | 0.32 | 0.25 | 0.05 | 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 some fluctuations over the observed period, ranging from a low of 0.00 to a high of 0.42. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates that the company has a greater ability to meet its short-term obligations using its readily available cash, while a lower ratio may suggest liquidity concerns.
Looking at the trend over the period, there are noticeable fluctuations in the cash ratio. The ratio decreased sharply from 0.42 on December 31, 2020, to 0.05 on March 31, 2021, indicating a significant decrease in the company's ability to cover its short-term liabilities with cash during that period. Subsequently, there were fluctuations in the ratio, with some periods showing improvements and others showing declines.
Organon & Co's cash ratio seems to have stabilized around the range of 0.20 to 0.30 in the later periods, although it dropped to 0.00 on September 30, 2024, which could be a point of concern as it indicates a lack of cash to cover short-term obligations.
Overall, it would be essential for Organon & Co to monitor its cash position closely and ensure that it maintains a healthy cash ratio to meet its short-term financial commitments effectively.
Peer comparison
Dec 31, 2024