Organon & Co (OGN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,486,000 | 1,327,000 | 1,478,000 | 1,619,000 | 2,849,000 |
| Total assets | US$ in thousands | 13,101,000 | 12,058,000 | 10,955,000 | 10,681,000 | 10,434,000 |
| Operating ROA | 11.34% | 11.01% | 13.49% | 15.16% | 27.30% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,486,000K ÷ $13,101,000K
= 11.34%
Organon & Co's operating return on assets (operating ROA) has declined over the years from 27.30% as of December 31, 2020, to 15.16% as of December 31, 2021, and further to 13.49% as of December 31, 2022. The decreasing trend continued in the following years, with operating ROA dropping to 11.01% as of December 31, 2023, and slightly increasing to 11.34% as of December 31, 2024.
This downward trend in operating ROA indicates a decrease in the company's ability to generate profits from its assets. It suggests that Organon & Co's operational efficiency and profitability have declined over the years, potentially due to factors such as increasing operating expenses, declining revenue, or inefficient asset utilization.
To improve its operating ROA, Organon & Co may need to focus on enhancing operational efficiency, controlling costs, optimizing asset utilization, and possibly reviewing its business strategies to drive profitability and maximize returns on assets in the future.
Peer comparison
Dec 31, 2024