Stock Analysis on Net
Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Common-Size Balance Sheet: Assets 

Merck & Co. Inc., common-size consolidated balance sheet: assets

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Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents 11.31 6.41 11.63 7.66 8.80
Short-term investments 0.38 0.24 0.46 0.00 0.00
Accounts receivable, net of allowance for doubtful accounts 8.78 9.70 8.66 8.73 8.57
Inventories, excludes inventories classified in Other assets 5.22 5.96 5.41 5.63 6.89
Other current assets 7.43 7.84 6.57 6.61 6.05
Current assets 33.12% 30.16% 32.72% 28.64% 30.31%
Investments 0.40 0.24 0.93 0.35 0.86
Property, plant and equipment, at cost, net of accumulated depreciation 20.31 21.61 19.62 18.24 19.64
Goodwill 18.50 19.87 19.42 20.12 22.10
Other intangibles, net 13.98 16.88 18.57 21.70 15.95
Other assets 13.70 11.25 8.73 10.96 11.15
Noncurrent assets 66.88% 69.84% 67.28% 71.36% 69.69%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The financial data reveals several noteworthy trends in the composition of assets over the five-year period ending in 2024.

Liquidity and Cash Position
Cash and cash equivalents as a percentage of total assets show fluctuation, beginning at 8.8% in 2020 and falling to a low of 6.41% in 2023 before recovering to 11.31% in 2024. Short-term investments, absent in early years, appear from 2022 onwards but remain a relatively minor component, peaking modestly at 0.46% in 2022.
Current Assets Composition
Accounts receivable remain relatively stable, fluctuating narrowly around 8.5%-9.7%, indicating consistent collection efficiency or revenue recognition patterns. Inventories demonstrate a gradual decline from 6.89% in 2020 to 5.22% in 2024, which may reflect inventory management improvements or shifts in business operations. Other current assets show a general upward trend, rising from 6.05% in 2020 to 7.43% in 2024, suggesting increased prepaid expenses or other receivables. Overall, current assets as a percentage of total assets vary but exhibit a slight increase by the end of the period, moving from 30.31% to 33.12%.
Long-Term Asset Components
Investments remain a marginal portion, with slight fluctuations but consistently below 1%. Property, plant, and equipment (PP&E) experience growth from 18.24% in 2021 to a peak of 21.61% in 2023, before a slight decline to 20.31% in 2024, indicating moderate capital investment activity. Goodwill steadily decreases over time, falling from 22.1% in 2020 to 18.5% in 2024, which may be indicative of impairment, divestitures, or changes in acquisition strategy. Other intangibles reveal a peak in 2021 at 21.7%, followed by a consistent decrease to 13.98% in 2024, suggesting amortization or reduced acquisition of intangible assets. Other assets show variability but trend upward from 8.73% in 2022 to 13.7% in 2024, possibly reflecting reclassifications or new long-term asset categories.
Asset Structure Dynamics
The split between current and noncurrent assets remains relatively stable with some fluctuations; noncurrent assets fluctuate between roughly 67% and 71%. The overall asset composition indicates a balanced approach between liquid and long-term holdings, with notable reductions in intangible-related assets and a slight rebound in liquidity towards the end of the period.