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	Sep 30, 2021	Jun 30, 2021	Mar 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	1,008,000	730,000	141,000
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	3,129,000	2,975,000	2,875,000
Cash ratio		0.24	0.17	0.14	0.20	0.28	0.21	0.23	0.30	0.28	0.32	0.25	0.05

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.