Analysis of Debt
Total Debt (Carrying Amount)
Merck & Co. Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Loans Payable and Current Portion of Long-Term Debt
- The short-term debt component showed a significant decline from 6,431 million US dollars in 2020 to 1,372 million US dollars in 2023. This decrease suggests a reduction in the immediate debt obligations of the company over this period. However, in 2024, there was a reversal of this trend with the amount increasing to 2,649 million US dollars, indicating a rise in short-term liabilities at the end of the most recent period.
- Long-Term Debt, Excluding Current Portion
- Long-term debt exhibited an overall upward trajectory. Starting at 25,360 million US dollars in 2020, it increased to 30,690 million US dollars in 2021. Although there was a decrease to 28,745 million US dollars in 2022, the debt resumed growth in subsequent years, reaching 33,683 million US dollars in 2023 and further rising to 34,462 million US dollars in 2024. This pattern indicates the company’s increasing reliance on long-term debt financing over the analyzed period, with some fluctuations.
- Total Loans Payable and Long-Term Debt, Including Current Portion (Carrying Amount)
- The aggregate debt level reflects the combined movement of short-term and long-term debt. The total carrying amount increased modestly from 31,791 million US dollars in 2020 to 33,102 million US dollars in 2021. This was followed by a decrease to 30,691 million US dollars in 2022, consistent with short-term debt reduction. However, the total debt resumed growth in 2023, reaching 35,055 million US dollars, and continued upward to 37,111 million US dollars in 2024. This pattern demonstrates an overall expansion in debt obligations over the five-year span, with a notable dip in the middle of the period.
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total loans payable and long-term debt, including current portion (fair value) | 32,600) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.88 |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on loans payable and long-term debt: 3.39%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 2.15% | 1,989) | 43) | |
| 2.75% | 1,980) | 54) | |
| 3.70% | 1,980) | 73) | |
| 3.40% | 1,742) | 59) | |
| 4.50% | 1,509) | 68) | |
| 1.70% | 1,497) | 25) | |
| 2.90% | 1,484) | 43) | |
| 5.00% | 1,482) | 74) | |
| 4.00% | 1,474) | 59) | |
| 4.15% | 1,240) | 51) | |
| 1.45% | 1,240) | 18) | |
| 2.45% | 1,216) | 30) | |
| 1.88% | 1,041) | 20) | |
| 0.75% | 998) | 7) | |
| 1.90% | 996) | 19) | |
| 5.15% | 987) | 51) | |
| 3.90% | 987) | 38) | |
| 2.35% | 986) | 23) | |
| 3.25% | 880) | 29) | |
| 3.50% | 877) | 31) | |
| 3.70% | 876) | 32) | |
| 3.75% | 873) | 33) | |
| 4.30% | 746) | 32) | |
| 4.90% | 740) | 36) | |
| 6.50% | 702) | 46) | |
| 1.38% | 517) | 7) | |
| 2.50% | 517) | 13) | |
| 4.05% | 498) | 20) | |
| 3.60% | 492) | 18) | |
| 6.55% | 404) | 26) | |
| 5.75% | 339) | 19) | |
| 5.95% | 307) | 18) | |
| 5.85% | 271) | 16) | |
| 6.40% | 251) | 16) | |
| 6.30% | 135) | 9) | |
| 5.02% | 209) | 10) | |
| Total | 34,462) | 1,168) | |
| 3.39% | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,168 ÷ 34,462 = 3.39%