Organon & Co (OGN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 864,000 | 1,023,000 | 917,000 | 1,351,000 | 2,160,000 |
| Total assets | US$ in thousands | 13,101,000 | 12,058,000 | 10,955,000 | 10,681,000 | 10,434,000 |
| ROA | 6.59% | 8.48% | 8.37% | 12.65% | 20.70% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $864,000K ÷ $13,101,000K
= 6.59%
Organon & Co's return on assets (ROA) has demonstrated a declining trend over the period from December 31, 2020, to December 31, 2024. The ROA stood at 20.70% at the end of 2020, signifying a strong ability to generate profits relative to the total assets employed. However, this figure decreased to 12.65% by the end of 2021, indicating a drop in profitability efficiency.
Subsequently, the ROA continued to diminish, reaching 8.37% by December 31, 2022, and further declining to 8.48% by December 31, 2023. This downward trajectory suggests a decreasing ability of the company to generate profits from its assets over time.
By the end of 2024, the ROA fell to 6.59%, marking a notable decrease in profitability efficiency compared to the initial period. This declining trend in ROA could indicate operational challenges, increased asset inefficiency, or other factors affecting the company's ability to generate returns from its assets effectively. Organon & Co may need to evaluate its asset utilization and profitability strategies to improve its ROA and overall financial performance in the future.
Peer comparison
Dec 31, 2024