Analysis of Debt
Total Debt (Carrying Amount)
Merck & Co. Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The carrying amount of total loans payable and long-term debt exhibited a fluctuating pattern over the five-year period. Initial observation reveals a decrease followed by increases in subsequent years.
- Overall Trend
- From 2021 to 2022, the total decreased from US$33,102 million to US$30,691 million, representing a reduction of approximately 7.3%. This was followed by a period of growth, with the total increasing to US$35,055 million in 2023, US$37,111 million in 2024, and reaching US$49,339 million in 2025. The increase from 2023 to 2025 is particularly notable, representing a 40.8% rise.
- Loans Payable and Current Portion
- Loans payable and the current portion of long-term debt decreased consistently from US$2,412 million in 2021 to US$1,372 million in 2023. However, this trend reversed in 2024, increasing to US$2,649 million, and continued to rise to US$2,589 million in 2025. While the 2025 value is lower than 2024, it still represents an increase from the initial 2021 level.
- Long-Term Debt (Excluding Current Portion)
- Long-term debt, excluding the current portion, demonstrated a more stable pattern. It decreased from US$30,690 million in 2021 to US$28,745 million in 2022. A subsequent increase was observed, reaching US$33,683 million in 2023 and US$34,462 million in 2024. The most significant increase occurred between 2024 and 2025, with the value rising substantially to US$46,750 million. This increase largely drives the overall trend in total debt.
The composition of the total debt appears to be shifting, with long-term debt becoming a more dominant component, particularly in the later years of the observed period. The substantial increase in long-term debt in 2025 warrants further investigation to understand the underlying reasons, such as potential acquisitions, capital expenditures, or refinancing activities.
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Total Debt (Fair Value)
| Dec 31, 2025 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total loans payable and long-term debt, including current portion (fair value) | 45,600) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.92 |
Based on: 10-K (reporting date: 2025-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on loans payable and long-term debt: 3.89%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 2.15% | 1,991) | 43) | |
| 2.75% | 1,981) | 54) | |
| 3.70% | 1,981) | 73) | |
| 3.40% | 1,744) | 59) | |
| 4.95% | 1,739) | 86) | |
| 4.50% | 1,553) | 70) | |
| 1.70% | 1,498) | 25) | |
| 5.00% | 1,492) | 75) | |
| 4.75% | 1,486) | 71) | |
| 2.90% | 1,485) | 43) | |
| 5.55% | 1,477) | 82) | |
| 4.00% | 1,475) | 59) | |
| 1.45% | 1,242) | 18) | |
| 4.15% | 1,241) | 52) | |
| 5.70% | 1,235) | 70) | |
| 2.45% | 1,217) | 30) | |
| 1.90% | 997) | 19) | |
| 4.55% | 995) | 45) | |
| 4.45% | 994) | 44) | |
| 4.15% | 994) | 41) | |
| 3.25% | 993) | 32) | |
| 3.50% | 990) | 35) | |
| 5.15% | 988) | 51) | |
| 3.90% | 988) | 39) | |
| 3.70% | 988) | 37) | |
| 2.35% | 987) | 23) | |
| 3.75% | 985) | 37) | |
| 5.70% | 984) | 56) | |
| 4.30% | 747) | 32) | |
| 3.85% | 747) | 29) | |
| 3.85% | 746) | 29) | |
| 4.15% | 745) | 31) | |
| 5.50% | 742) | 41) | |
| 4.90% | 740) | 36) | |
| 6.50% | 698) | 45) | |
| 1.38% | 583) | 8) | |
| 2.50% | 583) | 15) | |
| 4.05% | 499) | 20) | |
| 4.16% | 499) | 21) | |
| 4.35% | 498) | 22) | |
| 3.60% | 493) | 18) | |
| 6.55% | 402) | 26) | |
| 5.75% | 339) | 19) | |
| 5.95% | 308) | 18) | |
| 5.85% | 271) | 16) | |
| 6.40% | 251) | 16) | |
| 4.18% | 139) | 6) | |
| Total | 46,750) | 1,817) | |
| 3.89% | |||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,817 ÷ 46,750 = 3.89%