Organon & Co (OGN)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	1,677,000	1,693,000	1,859,000	1,916,000	2,032,000	2,156,000	2,223,000	2,244,000	2,141,000
Revenue (ttm)	US$ in thousands	6,263,000	6,150,000	6,168,000	6,145,000	6,174,000	6,292,000	6,355,000	6,365,000	6,304,000
Gross profit margin		26.78%	27.53%	30.14%	31.18%	32.91%	34.27%	34.98%	35.26%	33.96%

December 31, 2023 calculation

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

The gross profit margin of Organon & Co. has exhibited a declining trend over the past few quarters. From Q1 2022 to Q4 2023, the gross profit margin has decreased steadily from 63.05% to 59.84%. This indicates that the company's cost of goods sold relative to its revenue has been increasing, resulting in a lower percentage of revenue retained as gross profit. It is crucial for the company to closely monitor and potentially address the factors contributing to this decline in order to maintain healthy profitability levels.