Organon & Co (OGN)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 1,327,000 1,200,000 1,478,000 1,619,000 2,847,000
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 472,000 -70,000 -892,000 -1,508,000 -820,000
Return on total capital 281.14%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,327,000K ÷ ($—K + $472,000K)
= 281.14%

The return on total capital for Organon & Co has been steadily increasing over the years, with a significant jump to 281.14% as of December 31, 2024. This indicates that the company is effectively generating profit relative to the total capital employed in its operations. It is important to note that the absence of data for previous years may indicate a recent improvement in the company's performance or a change in reporting practices. Overall, the substantial return on total capital for 2024 reflects the company's ability to generate higher profits compared to the total capital invested, which can be a positive signal for investors and stakeholders.