Organon & Co (OGN)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 675,000 | 763,000 | 704,000 | 575,000 | 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 | 500,000 |
| Short-term investments | US$ in thousands | — | -762,237 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.25 | 0.00 | 0.26 | 0.23 | 0.24 | 0.17 | 0.14 | 0.20 | 0.28 | 0.21 | 0.23 | 0.30 | 0.28 | 0.32 | 0.25 | 0.05 | 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 fluctuated over the past five years, ranging from a low of 0.00 to a high of 0.42. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current liquid assets alone.
It is evident that Organon & Co experienced a significant decline in its quick ratio from March 2021 to September 2021, dropping from 0.05 to 0.32. However, the ratio decreased again in the subsequent periods, reaching its lowest point of 0.00 on September 30, 2024, indicating potentially severe liquidity issues during that period.
Overall, the trend in Organon & Co's quick ratio suggests fluctuations in its ability to cover short-term obligations with liquid assets alone. It is important for the company to closely monitor and manage its liquidity to ensure it can meet its short-term financial commitments effectively.
Peer comparison
Dec 31, 2024