Organon & Co (OGN)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 673,000 | 1,122,000 | 1,529,000 |
| Revenue | US$ in thousands | 6,263,000 | 6,174,000 | 6,304,000 |
| Pretax margin | 10.75% | 18.17% | 24.25% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $673,000K ÷ $6,263,000K
= 10.75%
The pretax margin of Organon & Co. has declined gradually over the past five years. In 2019, the pretax margin was at its highest at 47.52%, indicating that the company was able to generate $0.4752 in pretax profit for every dollar of sales. However, the pretax margin experienced a significant decrease to 27.47% in 2020, followed by further declines to 24.25% in 2021, 18.17% in 2022, and 10.75% in 2023.
This downward trend in pretax margin suggests that Organon & Co. may be facing challenges in controlling its operating expenses relative to its revenue generation. It is important for the company to closely monitor its cost structure and seek ways to improve efficiency in order to enhance its profitability in the future.
Peer comparison
Dec 31, 2023