Organon & Co (OGN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | 0.00 | — |
| Financial leverage ratio | 27.76 | 25.87 | 84.40 | 247.73 | — | — | — | — | — | — | — | — | — | — | — | 2.04 | — |
Organon & Co's solvency ratios indicate a very low level of indebtedness and strong financial health. The Debt-to-assets ratio has consistently been at 0.00 from December 31, 2020, to December 31, 2024, showcasing that the company has no significant debt in relation to its total assets over this period.
The Debt-to-capital ratio and Debt-to-equity ratio were not available for analysis until March 31, 2021, and have since remained at low levels of 0.00. This indicates that the company's debt relative to its capital and equity is minimal, implying a lower financial risk and a healthy capital structure.
The Financial leverage ratio, which was 2.04 on March 31, 2021, suggests that the company had a moderate level of financial leverage at that time. However, this ratio decreased significantly over time, reaching 27.76 by December 31, 2024. This decline indicates a reduction in financial risk and a more conservative approach towards leveraging, which could be beneficial for the company's long-term stability.
Overall, Organon & Co's solvency ratios demonstrate prudent financial management practices and a strong position in terms of debt management and capital structure, contributing to the company's financial stability and resilience.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.64 | 2.76 | 2.53 | 2.56 | 2.47 | 2.35 | 2.86 | 3.24 | 3.92 | 4.39 | 4.75 | 5.38 | 7.01 | 11.41 | 23.35 | 78.63 | 107.62 |
Organon & Co's interest coverage ratio has shown a declining trend over the period from December 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a better ability to cover interest expenses.
Initially, in December 2020, the interest coverage ratio was quite healthy at 107.62, suggesting that the company had more than sufficient operating income to cover its interest expenses. However, this ratio steadily decreased over the following quarters, reaching 2.64 by December 31, 2024.
The declining trend in the interest coverage ratio suggests a potential strain on Organon & Co's ability to cover its interest payments with its operating income. A low interest coverage ratio may indicate increased financial risk, as the company may struggle to meet its debt obligations. This trend requires close monitoring to assess the company's financial health and its ability to manage its debt levels effectively.