Organon & Co (OGN)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,348,000 | 4,756,000 | 4,509,000 | 4,196,000 | 4,508,000 | 4,050,000 | 3,958,000 | 3,780,000 | 3,931,000 | 3,592,000 | 3,774,000 | 3,719,000 | 3,760,000 | 4,329,000 | 3,911,000 | 2,977,000 | 3,434,000 |
| 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 |
| Current ratio | 1.60 | 1.70 | 1.64 | 1.65 | 1.54 | 1.63 | 1.66 | 1.61 | 1.56 | 1.54 | 1.58 | 1.61 | 1.45 | 1.38 | 1.31 | 1.04 | 2.86 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,348,000K ÷ $2,718,000K
= 1.60
The current ratio of Organon & Co has fluctuated over the period, indicating changes in the company's short-term liquidity position. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio of 1 or higher is considered healthy, as it suggests that the company has more current assets than current liabilities.
As of December 31, 2020, Organon & Co had a current ratio of 2.86, indicating a strong liquidity position. However, the ratio decreased to 1.04 by March 31, 2021, which could be a cause for concern as it suggests a potential strain on the company's ability to meet its short-term obligations.
The current ratio improved in the following quarters, reaching a peak of 1.70 on September 30, 2024. This increase indicates that the company was able to efficiently manage its current assets and liabilities during this period. However, it is important to note that the current ratio decreased to 1.60 by December 31, 2024.
Overall, while the current ratio of Organon & Co has shown fluctuations, it generally stayed above 1 throughout the period, indicating that the company has been able to meet its short-term obligations with its current assets. It is essential for the company to monitor and manage its current assets and liabilities to ensure a healthy current ratio and sustain its liquidity position in the future.
Peer comparison
Dec 31, 2024