Organon & Co (OGN)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Gross profit	US$ in thousands	1,677,000	2,023,000	2,141,000
Revenue	US$ in thousands	6,263,000	6,174,000	6,304,000
Gross profit margin		26.78%	32.77%	33.96%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,677,000K ÷ $6,263,000K
= 26.78%

The gross profit margin of Organon & Co. has shown a declining trend over the past five years, decreasing from 70.76% in 2019 to 59.84% in 2023. This indicates that the company's ability to generate profit from its sales revenue has been weakening over time. Factors such as changes in pricing strategies, cost structures, or competition may have contributed to this downward trend. It is important for management to closely monitor and analyze the drivers behind this decline to identify areas for improvement and to enhance the company's overall profitability in the future.