Organon & Co (OGN)

Organon & Co.'s solvency ratios indicate the firm's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a declining trend from 0.86 in 2021 to 0.73 in 2023, suggesting a more conservative approach to leverage and a healthier financial position in terms of utilizing assets to finance operations.

Similarly, the debt-to-capital ratio has also decreased from 1.20 in 2021 to 1.01 in 2023, indicating a reduced reliance on debt financing compared to total capital employed. This implies a more sustainable capital structure and lower financial risk for the company.

While the debt-to-equity ratio and financial leverage ratio data are not available for all years, the overall trend suggests a prudent management of debt levels and a gradual shift towards a more balanced capital structure. The decreasing trend in these ratios signifies an improved solvency position and better ability to withstand financial downturns or economic uncertainties.

Overall, the declining trends in the solvency ratios of Organon & Co. reflect a strengthening financial position and a more sustainable debt management strategy, which can enhance the company's long-term stability and resilience in the face of potential challenges.

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Coverage ratios

The interest coverage ratio of Organon & Co. has shown a declining trend over the past five years based on the available data. In 2023, the interest coverage ratio was 2.52, indicating that the company's ability to cover its interest expenses with its operating income has weakened compared to the previous years. This declining trend raises concerns about the company's financial health and its ability to meet its debt obligations comfortably. It is important for Organon & Co. to closely monitor its interest coverage ratio and take proactive measures to improve it in order to ensure financial stability and sustainability in the long term.