Organon & Co (OGN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,508,000 | 3,931,000 | 3,760,000 |
| Total current liabilities | US$ in thousands | 2,918,000 | 2,512,000 | 2,597,000 |
| Current ratio | 1.54 | 1.56 | 1.45 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,508,000K ÷ $2,918,000K
= 1.54
The current ratio measures Organon & Co.'s ability to meet its short-term obligations using its current assets. A higher current ratio indicates a healthier liquidity position.
Organon & Co.'s current ratio has fluctuated over the past five years:
- In 2023, the current ratio stood at 1.54, a slight decrease from the prior year.
- In 2022 and 2021, the current ratios were 1.56 and 1.45, respectively, showing relatively stable but slightly declining liquidity positions.
- In 2020 and 2019, the company had more robust current ratios of 2.86 and 2.95, respectively, indicating a stronger ability to cover short-term obligations with current assets.
The declining trend in the current ratio over the last three years from the peak in 2019 suggests a potential decrease in short-term liquidity. Organon & Co. may need to carefully manage its current assets and liabilities to ensure it can meet its short-term obligations effectively in the future. Further analysis of the individual components of current assets and liabilities would provide more insights into the company's liquidity management.
Peer comparison
Dec 31, 2023