Organon & Co (OGN)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	1,486,000	1,502,000	1,112,232	726,621	706,621	621,621	979,389	1,411,000	1,503,000	1,610,000	1,646,000	1,672,000	1,652,000	1,783,000	2,092,000	2,365,000	2,779,000
Total assets	US$ in thousands	13,101,000	12,752,000	12,154,000	11,891,000	12,058,000	11,012,000	10,979,000	10,763,000	10,955,000	10,437,000	10,614,000	10,597,000	10,681,000	11,335,000	10,908,000	9,642,000	10,434,000
Operating ROA		11.34%	11.78%	9.15%	6.11%	5.86%	5.64%	8.92%	13.11%	13.72%	15.43%	15.51%	15.78%	15.47%	15.73%	19.18%	24.53%	26.63%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,486,000K ÷ $13,101,000K
= 11.34%

The operating return on assets (operating ROA) for Organon & Co has shown a decreasing trend from December 31, 2020, where it was at 26.63%, to December 31, 2024, where it stood at 11.34%. This indicates that the company's ability to generate operating income from its assets has been declining over this period.

The peak operating ROA was observed in the first quarter of 2021 at 26.63%, followed by a gradual decline over the subsequent quarters. There was a significant drop in operating ROA from June 30, 2023, to March 31, 2024, where it decreased from 8.92% to 6.11%.

Overall, the decreasing trend in operating ROA suggests that Organon & Co may be facing challenges in efficiently utilizing its assets to generate operating income. It is important for the company to closely monitor and address the factors contributing to this decline to improve its operational efficiency and profitability in the future.