Organon & Co (OGN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 472,000 | -70,000 | -892,000 | -1,508,000 | -820,000 |
| ROE | 183.05% | — | — | — | — |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $864,000K ÷ $472,000K
= 183.05%
The return on equity (ROE) for Organon & Co has shown significant improvement over the years. As per the data provided, the ROE was not available for the years up to December 31, 2020 and remained unchanged through December 31, 2023. However, there was a notable increase in ROE to 183.05% as of December 31, 2024.
This surge in ROE indicates that Organon & Co has generated substantial profits relative to its shareholders' equity in the most recent year. This could be due to various factors such as efficient cost management, higher revenue generation, increased asset utilization, or a combination of these factors.
Investors and stakeholders typically view a high ROE positively, as it signifies that the company is utilizing its equity effectively to generate profits. However, it is essential to further analyze the company's financial statements and operations to understand the underlying reasons for this increase in ROE and ensure its sustainability.
Peer comparison
Dec 31, 2024