Organon & Co (OGN)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 1,023,000 | 917,000 | 1,351,000 |
| Total assets | US$ in thousands | 12,058,000 | 10,955,000 | 10,681,000 |
| ROA | 8.48% | 8.37% | 12.65% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,023,000K ÷ $12,058,000K
= 8.48%
ROA, as calculated by dividing net income by average total assets, provides insights into a company's ability to generate profits from its assets. In the case of Organon & Co., the trend in ROA over the past five years indicates a fluctuating pattern. The ROA decreased from 31.34% in 2019 to 14.38% in 2020, and further declined to 12.65% in 2021. However, there was a slight improvement in 2022 to 8.37% before increasing to 8.48% in 2023.
The significant drop in ROA from 2019 to 2020 suggests a potential decrease in profitability relative to the assets employed. The subsequent marginal improvements in 2022 and 2023 indicate some efforts to enhance profitability. The downward trajectory in ROA from 2019 to 2023 could be a cause for concern and may require further analysis to understand the underlying drivers impacting the company's profitability in relation to its asset base.
Peer comparison
Dec 31, 2023