Organon & Co (OGN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 58.02% | 58.26% | 58.59% | 59.04% | 59.84% | 60.55% | 61.66% | 62.36% | 62.84% | 63.47% | 62.92% | 63.05% | 62.22% | 54.34% | 55.35% | 56.53% | 58.66% |
| Operating profit margin | 23.21% | 23.44% | 17.53% | 11.45% | 11.28% | 10.11% | 15.88% | 22.96% | 24.34% | 25.58% | 25.90% | 26.26% | 26.20% | 22.63% | 26.51% | 30.24% | 34.33% |
| Pretax margin | 12.60% | 12.20% | 10.32% | 10.62% | 10.75% | 11.06% | 14.30% | 14.89% | 18.17% | 19.82% | 21.30% | 23.63% | 24.25% | 22.16% | 25.83% | 29.44% | 33.10% |
| Net profit margin | 13.49% | 20.30% | 15.76% | 16.50% | 16.33% | 9.51% | 12.22% | 12.14% | 14.85% | 16.07% | 17.42% | 20.42% | 21.43% | 19.26% | 22.06% | 23.73% | 26.68% |
Organon & Co's profitability ratios have shown some fluctuations over the reported periods. The gross profit margin, a measure of a company's efficiency in producing goods or services, decreased from 58.66% in December 2020 to 58.02% in December 2024, with some variations in between. This indicates a slight decline in the company's ability to generate profits from its core operations, albeit remaining relatively stable over the years.
The operating profit margin, reflecting the company's operational efficiency and cost management, varied significantly. It dropped from 34.33% in December 2020 to 11.45% in March 2024, before showing an improvement to 23.21% in December 2024. These fluctuations suggest challenges in controlling operating expenses and maximizing operating income during certain periods.
The pretax margin, which shows the company's profitability before taxes, declined from 33.10% in December 2020 to 12.60% in December 2024. This downward trend implies a reduction in the company's ability to generate profits before considering tax implications, likely influenced by changing market conditions and internal factors.
Lastly, the net profit margin, indicating the percentage of revenue that translates into profit after all expenses are deducted, showcased variations from 26.68% in December 2020 to 13.49% in December 2024. This demonstrates fluctuations in the company's bottom-line profitability, reflecting challenges in managing costs or generating revenue during certain periods.
In conclusion, while Organon & Co's gross profit margin remained relatively stable, its operating profit margin, pretax margin, and net profit margin experienced fluctuations over the reported periods, suggesting varying levels of operational efficiency, cost control, and overall profitability. Further analysis of the factors influencing these ratios would provide deeper insights into the company's financial performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.59% | 10.20% | 8.23% | 8.80% | 8.48% | 5.31% | 6.87% | 6.93% | 8.37% | 9.69% | 10.43% | 12.27% | 12.65% | 13.38% | 15.96% | 19.25% | 20.70% |
| Return on total capital | 291.10% | 289.45% | 920.83% | 2,810.42% | — | — | — | — | — | — | — | — | — | — | — | 49.96% | — |
| Return on equity (ROE) | 183.05% | 263.89% | 694.44% | 2,181.25% | — | — | — | — | — | — | — | — | — | — | — | 39.31% | — |
Organon & Co's profitability ratios show a varying trend over the periods analyzed.
1. Operating Return on Assets (Operating ROA) started at a high of 26.63% on December 31, 2020, and showed a gradual decline to 5.64% on September 30, 2023. There was a slight recovery to 11.34% on December 31, 2024, indicating fluctuations in the company's operating efficiency.
2. Return on Assets (ROA) exhibited a similar pattern, declining from 20.70% on December 31, 2020, to 5.31% on September 30, 2023, before increasing to 6.59% on December 31, 2024. This ratio reflects the company's ability to generate profits from its assets, with some improvements towards the end of the period.
3. Return on Total Capital was unavailable for most periods, except for significant percentages on March 31, 2024, and subsequent quarters. This indicates a substantial return on the total capital employed, but the absence of data for other periods limits a comprehensive analysis of this ratio.
4. Return on Equity (ROE) also displayed a trend similar to ROA, with a sharp increase in percentages from March 31, 2024, onwards. The ROE ratios reflect the profitability of the company from the perspective of its equity shareholders, showing a marked improvement in the later periods.
In conclusion, Organon & Co's profitability ratios demonstrate fluctuations in operating efficiency, asset utilization, and equity returns over the periods analyzed, with some improvements in profitability towards the end of the period. Further analysis would be required to understand the underlying factors driving these fluctuations and to assess the company's overall financial performance.