Organon & Co (OGN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Operating income | US$ in thousands | -922,000 | -412,000 | -83,000 |
| Total assets | US$ in thousands | 12,058,000 | 10,955,000 | 10,681,000 |
| Operating ROA | -7.65% | -3.76% | -0.78% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-922,000K ÷ $12,058,000K
= -7.65%
Organon & Co.'s operating return on assets (operating ROA) has shown a declining trend over the last five years. From 2019 to 2023, the operating ROA decreased from 36.41% to 11.01%. This indicates a significant drop in the efficiency of the company in generating operating profits from its assets.
The decreasing trend in operating ROA may suggest potential issues with the company's operational effectiveness and asset utilization. It could be due to factors such as increasing operating expenses, declining revenue, or inefficient use of assets.
Investors and stakeholders may be concerned about this downward trend as it indicates a diminishing ability of Organon & Co. to generate operating profits relative to its assets. Further analysis of the company's financial performance and operational strategies would be necessary to pinpoint the specific reasons behind the declining operating ROA and to develop appropriate remedial actions.
Peer comparison
Dec 31, 2023