Organon & Co (OGN)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.73 | 0.79 | 0.79 | 0.81 | 0.81 | 0.83 | 0.84 | 0.86 | 0.85 | 0.82 | 0.85 | 0.00 |
| 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 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | 2.04 |
The solvency ratios of Organon & Co. based on the provided data indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a decreasing trend from 0.81 in Q4 2022 to 0.73 in Q4 2023, which suggests a better ability to cover debt with its assets over time.
Similarly, the debt-to-capital ratio has decreased from 1.11 in Q4 2022 to 1.01 in Q4 2023, indicating a lower reliance on debt to finance its operations. These trends reflect positively on the company's financial health and may signify improved solvency.
Unfortunately, data on the debt-to-equity ratio and financial leverage ratio are not provided, limiting a comprehensive analysis of the company's solvency position. It would be beneficial to consider additional financial metrics to gain a more thorough understanding of Organon & Co.'s overall solvency and leverage levels.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.28 | 2.32 | 2.80 | 3.00 | 3.66 | 4.11 | 4.46 | 5.23 | 6.93 |
Organon & Co.'s interest coverage ratio has shown some fluctuations over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a greater ability to cover interest expenses with operating income.
Looking at the data provided, we can see that the interest coverage ratio has ranged from a low of 2.50 to a high of 5.31. In Q1 2022, the company had the highest interest coverage ratio of 5.31, indicating a strong ability to meet interest obligations with operating income. However, this ratio decreased to 2.52 in Q4 2023, which may indicate a potential decrease in the company's ability to cover interest expenses.
Overall, the trend in the interest coverage ratio for Organon & Co. shows some variability, with the ratio fluctuating between 2.50 and 5.31 over the past eight quarters. It would be important to further investigate the factors influencing these fluctuations to assess the company's financial health and sustainability.