Organon & Co (OGN)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,101,000 | 12,752,000 | 12,154,000 | 11,891,000 | 12,058,000 | 11,012,000 | 10,979,000 | 10,763,000 | 10,955,000 | 10,437,000 | 10,614,000 | 10,597,000 | 10,681,000 | 11,335,000 | 10,908,000 | 9,642,000 | 10,434,000 |
| Total stockholders’ equity | US$ in thousands | 472,000 | 493,000 | 144,000 | 48,000 | -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 | -820,000 |
| Financial leverage ratio | 27.76 | 25.87 | 84.40 | 247.73 | — | — | — | — | — | — | — | — | — | — | — | 2.04 | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,101,000K ÷ $472,000K
= 27.76
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. Looking at the data provided for Organon & Co from December 31, 2020, to December 31, 2024, we observe the following:
- In March 31, 2021, the financial leverage ratio was 2.04, indicating that the company had a higher proportion of debt relative to equity in its capital structure at that point in time.
- Subsequently, the financial leverage ratio was not reported for the following periods until March 31, 2024, when it significantly increased to 247.73. This sudden spike in the financial leverage ratio suggests a substantial increase in the company's reliance on debt to finance its operations or investments.
- By June 30, 2024, the financial leverage ratio decreased to 84.40, indicating a reduction in the level of debt compared to equity in the company's capital structure. This could be due to various factors such as debt repayments or equity infusions.
- The financial leverage ratio continued to decline in the subsequent quarters, reaching 27.76 as of December 31, 2024. This decreasing trend shows that Organon & Co may be actively managing its debt levels and working towards a more balanced capital structure.
In summary, the financial leverage ratio for Organon & Co has shown fluctuations over the period analyzed, with a notable increase followed by a gradual decrease. It is essential for the company to carefully monitor and manage its debt levels to maintain financial stability and optimize its capital structure in the long term.
Peer comparison
Dec 31, 2024