Organon & Co (OGN)
Profitability ratios
Return on sales
| 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 margin | 26.78% | 27.53% | 30.14% | 31.18% | 32.91% | 34.27% | 34.98% | 35.26% | 33.96% |
| Operating profit margin | -14.85% | -14.34% | -10.20% | -10.07% | -6.38% | -4.86% | -2.38% | 0.05% | -1.32% |
| Pretax margin | 10.75% | 11.06% | 14.30% | 14.89% | 18.17% | 19.82% | 21.31% | 23.57% | 24.25% |
| Net profit margin | 16.33% | 9.51% | 12.22% | 12.14% | 14.85% | 16.07% | 17.42% | 20.42% | 21.43% |
Organon & Co.'s profitability ratios have shown some fluctuations over the past eight quarters. The gross profit margin has been gradually declining from 62.84% in Q4 2022 to 59.84% in Q4 2023, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin has also experienced a downward trend, starting at 27.62% in Q4 2022 and decreasing to 21.19% in Q4 2023. This suggests that Organon & Co. is experiencing higher operating expenses relative to its revenue.
Similarly, the pretax margin has decreased from 18.17% in Q4 2022 to 10.75% in Q4 2023, indicating a decline in the company's profitability before accounting for taxes.
The net profit margin has also displayed fluctuations but has generally decreased from 20.42% in Q1 2022 to 16.33% in Q4 2023. This implies that Organon & Co. is retaining a lower percentage of its revenue as net profit after accounting for all expenses.
Overall, Organon & Co.'s profitability ratios suggest a downward trend in the company's ability to generate profits over the analyzed period. It may be beneficial for the company to focus on cost control measures and revenue generation strategies to improve its profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -7.71% | -8.01% | -5.73% | -5.75% | -3.60% | -2.93% | -1.42% | 0.03% | -0.78% |
| Return on assets (ROA) | 8.48% | 5.31% | 6.87% | 6.93% | 8.37% | 9.69% | 10.43% | 12.27% | 12.65% |
| Return on total capital | 13.82% | 14.86% | 16.81% | 17.22% | 19.27% | 21.61% | 22.52% | 23.68% | 23.46% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — |
Organon & Co.'s profitability metrics indicate a generally positive trend over the previous quarters. The Operating return on assets (Operating ROA) has decreased gradually from 17.78% in Q1 2022 to 11.01% in Q4 2023. This suggests a decline in the company's ability to generate operating income from its total assets. However, the Operating ROA remains relatively robust, indicating efficient asset utilization.
The Return on assets (ROA) has also fluctuated, with a peak of 12.27% in Q1 2022 and declining to 8.48% in Q4 2023. This trend suggests a decrease in the company's overall profitability relative to its total assets, indicating that Organon & Co. may be less effective in generating profits from its asset base in recent quarters.
On the other hand, the Return on total capital has demonstrated a more consistent performance, peaking at 24.02% in Q1 2022 and remaining above 15% throughout the quarters. This metric reflects the efficiency of Organon & Co. in generating profits from both debt and equity capital invested in the business, indicating strong overall financial performance.
Unfortunately, data for Return on equity (ROE) is missing, which could have provided further insight into the company's ability to generate profits from shareholders' equity. It would be beneficial to track ROE in future periods to assess Organon & Co.'s profitability from an equity perspective.
In conclusion, while the company's Operating ROA and ROA have shown some decline, the consistent performance of Return on total capital indicates the company's ability to effectively utilize its capital resources for generating profits. Keeping a close watch on all profitability metrics will be important for stakeholders to assess Organon & Co.'s financial health and performance over time.