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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Organon's Cost of Goods Sold for the three months ended in Dec. 2024 was $696 Mil. Organon's Average Total Inventories for the quarter that ended in Dec. 2024 was $1,352 Mil. Organon's Inventory Turnover for the quarter that ended in Dec. 2024 was 0.51.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Organon's Days Inventory for the three months ended in Dec. 2024 was 177.26.
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Organon's Inventory-to-Revenue for the quarter that ended in Dec. 2024 was 0.85.
The historical data trend for Organon's Inventory Turnover can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Organon Annual Data | ||||||||||||||||
Trend | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | Dec24 | |||||||||
Inventory Turnover | Get a 7-Day Free Trial | 2.14 | 2.61 | 2.39 | 2.17 | 2.04 |
Organon Quarterly Data | ||||||||||||||||||||
Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | Dec24 | |
Inventory Turnover | Get a 7-Day Free Trial |
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0.55 | 0.52 | 0.52 | 0.49 | 0.51 |
Organon's Inventory Turnover for the fiscal year that ended in Dec. 2024 is calculated as
Inventory Turnover (A: Dec. 2024 ) | |||||||
= | Cost of Goods Sold | / | Average Total Inventories | ||||
= | Cost of Goods Sold (A: Dec. 2024 ) | / ( | (Total Inventories (A: Dec. 2023 ) | + | Total Inventories (A: Dec. 2024 )) | / | count ) |
= | 2688 | / ( | (1315 | + | 1321) | / | 2 ) |
= | 2688 | / | 1318 | ||||
= | 2.04 |
Organon's Inventory Turnover for the quarter that ended in Dec. 2024 is calculated as
Inventory Turnover (Q: Dec. 2024 ) | |||||||
= | Cost of Goods Sold | / | Average Total Inventories | ||||
= | Cost of Goods Sold (Q: Dec. 2024 ) | / ( | (Total Inventories (Q: Sep. 2024 ) | + | Total Inventories (Q: Dec. 2024 )) | / | count ) |
= | 696 | / ( | (1383 | + | 1321) | / | 2 ) |
= | 696 | / | 1352 | ||||
= | 0.51 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Organon (NYSE:OGN) Inventory Turnover Explanation
Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.
1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Organon's Days Inventory for the three months ended in Dec. 2024 is calculated as:
Days Inventory | = | Average Total Inventories (Q: Dec. 2024 ) | / | Cost of Goods Sold (Q: Dec. 2024 ) | * | Days in Period |
= | 1352 | / | 696 | * | 365 / 4 | |
= | 177.26 |
2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Organon's Inventory to Revenue for the quarter that ended in Dec. 2024 is calculated as
Inventory-to-Revenue | = | Average Total Inventories (Q: Dec. 2024 ) | / | Revenue (Q: Dec. 2024 ) |
= | 1352 | / | 1592 | |
= | 0.85 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.
Thank you for viewing the detailed overview of Organon's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.
Kirke Weaver | officer: Gen. Counsel & Corp. Secy. | 30 HUDSON STREET, FLOOR 33, JERSEY CITY NJ 07302 |
Ma. Fatima Francisco | director | ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202 |
Deborah H Telman | officer: General Counsel | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Kathryn Dimarco | officer: Corporate Controller | 30 HUDSON STREET, FLOOR 33, JERSEY CITY NJ 07302 |
Susanne Fiedler | officer: Chief Commercial Officer | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Vittorio Nisita | officer: Head of Global Business Svcs | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Morrissey Joseph T. Jr. | officer: Head of Manufacturing | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Aaron Falcione | officer: Chief Human Resources Officer | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Deborah R Leone | director | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Martha E Mcgarry | director | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Phillip Ozuah | director | 30 HUDSON STREET, FLOOR 33, JERSEY CITY NJ 07302 |
Geralyn S Ritter | officer: Hd of Ext. Affairs and ESG | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Sandra Milligan | officer: Head of Research & Development | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Cynthia M Patton | director | ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320-1799 |
Alan Ezekowitz | director | C/O FULCRUM THERAPEUTICS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139 |
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