Organon & Co (OGN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,200,000 | 1,544,000 | 1,787,000 |
| Long-term debt | US$ in thousands | 8,751,000 | 8,905,000 | 9,125,000 |
| Total stockholders’ equity | US$ in thousands | -70,000 | -892,000 | -1,508,000 |
| Return on total capital | 13.82% | 19.27% | 23.46% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,200,000K ÷ ($8,751,000K + $-70,000K)
= 13.82%
The return on total capital for Organon & Co. has shown a declining trend over the past five years. In 2019, the return on total capital was at its peak at 54.05%, indicating strong profitability and efficient capital utilization. However, the return on total capital has been gradually decreasing since then, with figures of 23.75% in 2021, 21.26% in 2022, and 15.27% in 2023.
This declining trend suggests that Organon & Co. may be facing challenges in maintaining or improving its profitability and efficiency in capital management. Further analysis would be required to identify the specific factors contributing to this trend and to develop strategies to potentially reverse it.
Peer comparison
Dec 31, 2023