Organon & Co (OGN)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Long-term debt	US$ in thousands	8,751,000	8,646,000	8,722,000	8,703,000	8,905,000	8,691,000	8,884,000	9,085,000	9,125,000	9,259,000	9,309,000	—
Total stockholders’ equity	US$ in thousands	-70,000	-589,000	-555,000	-737,000	-892,000	-1,066,000	-1,137,000	-1,250,000	-1,508,000	-1,618,000	-1,934,000	4,722,000
Debt-to-capital ratio		1.01	1.07	1.07	1.09	1.11	1.14	1.15	1.16	1.20	1.21	1.26	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,751,000K ÷ ($8,751,000K + $-70,000K)
= 1.01

The debt-to-capital ratio for Organon & Co. has shown a downward trend over the past eight quarters, declining from 1.16 in Q1 2022 to 1.01 in Q4 2023. This indicates that the company's level of debt relative to its total capital has decreased over this period.

A high debt-to-capital ratio suggests that a company has a higher proportion of debt in its capital structure, which can indicate higher financial risk and dependency on debt financing. Conversely, a lower ratio may signal a stronger financial position and less reliance on debt.

In the case of Organon & Co., the decreasing trend in the debt-to-capital ratio could indicate efforts to reduce debt levels or strengthen the company's capital base. This may be viewed positively by investors and creditors as it suggests improved financial stability and potentially lower risk. However, it is important to consider the reasons behind this trend and assess the overall financial health of the company in conjunction with other relevant financial ratios and factors.