Organon & Co (OGN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 675,000 | 693,000 | 706,000 | 737,000 | 500,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,718,000 | 2,918,000 | 2,512,000 | 2,597,000 | 1,201,000 |
| Quick ratio | 0.25 | 0.24 | 0.28 | 0.28 | 0.42 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($675,000K
+ $—K
+ $—K)
÷ $2,718,000K
= 0.25
The quick ratio of Organon & Co has shown a declining trend over the past five years, decreasing from 0.42 as of December 31, 2020, to 0.25 as of December 31, 2024. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over the period. A quick ratio below 1 suggests that the company may have difficulty meeting its current liabilities without relying on the sale of inventory or other current assets. Organon & Co may need to further evaluate its liquidity management and consider strategies to improve its quick ratio in order to enhance its short-term financial health and stability.
Peer comparison
Dec 31, 2024