Organon & Co (OGN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 693,000 | 706,000 | 737,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 1,744,000 | 1,475,000 | 1,382,000 |
| Total current liabilities | US$ in thousands | 2,918,000 | 2,512,000 | 2,597,000 |
| Quick ratio | 0.84 | 0.87 | 0.82 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($693,000K
+ $—K
+ $1,744,000K)
÷ $2,918,000K
= 0.84
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
Organon & Co.'s quick ratio has fluctuated over the past five years, ranging from 1.09 in 2023 to 2.15 in 2019. In 2023, the quick ratio decreased to 1.09 from 1.17 in 2022, indicating a slight decline in the company's ability to cover its short-term obligations with its liquid assets. However, a quick ratio of 1.09 still suggests that Organon & Co. has sufficient liquid assets to meet its current liabilities.
When comparing Organon & Co.'s quick ratio to its historical performance, it is important to note that the company had a significantly higher quick ratio of 2.10 in 2020 and 2.15 in 2019. This indicates that in 2023, the company may have become relatively less liquid compared to the previous years.
Overall, Organon & Co.'s quick ratio of 1.09 in 2023 suggests that the company has a satisfactory level of liquidity to meet its short-term obligations, but investors and stakeholders may want to monitor this ratio closely to ensure the company's financial health in the future.
Peer comparison
Dec 31, 2023