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, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Cash and cash equivalents 10.64 11.31 6.41 11.63 7.66
Short-term investments 0.00 0.38 0.24 0.46 0.00
Accounts receivable, net of allowance for doubtful accounts 8.60 8.78 9.70 8.66 8.73
Inventories, excludes inventories classified in Other assets 4.86 5.22 5.96 5.41 5.63
Other current assets 7.68 7.43 7.84 6.57 6.61
Current assets 31.79% 33.12% 30.16% 32.72% 28.64%
Investments 0.70 0.40 0.24 0.93 0.35
Property, plant and equipment, at cost, net of accumulated depreciation 18.50 20.31 21.61 19.62 18.24
Goodwill 15.77 18.50 19.87 19.42 20.12
Other intangibles, net 19.49 13.98 16.88 18.57 21.70
Other assets 13.75 13.70 11.25 8.73 10.96
Noncurrent assets 68.21% 66.88% 69.84% 67.28% 71.36%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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 asset composition of the entity exhibits several notable shifts over the five-year period. Current assets, as a percentage of total assets, demonstrate volatility, initially increasing from 28.64% in 2021 to a peak of 33.12% in 2024 before decreasing to 31.79% in 2025. Noncurrent assets correspondingly fluctuate, decreasing from 71.36% in 2021 to 66.88% in 2024, then increasing to 68.21% in 2025. Within these broad categories, specific asset components reveal more granular trends.

Liquidity and Current Assets
Cash and cash equivalents experienced a significant increase between 2021 and 2022, rising from 7.66% to 11.63% of total assets, before declining to 6.41% in 2023 and recovering to 11.31% in 2024 and 10.64% in 2025. Short-term investments are minimal until 2022, reaching 0.46% before decreasing to 0.24% in 2023 and slightly increasing to 0.38% in 2024. Accounts receivable remain relatively stable, fluctuating between 8.60% and 9.70% of total assets. Inventories show a slight decrease over the period, moving from 5.63% in 2021 to 4.86% in 2025. Other current assets consistently represent a substantial portion of current assets, increasing from 6.61% to 7.84% in 2023, then decreasing to 7.68% in 2025.
Long-Term Investments and Fixed Assets
Investments as a percentage of total assets are generally low, with a peak of 0.93% in 2022, and a rise to 0.70% in 2025. Property, plant, and equipment (PP&E) steadily increased from 18.24% in 2021 to 21.61% in 2023, before decreasing to 18.50% in 2025. This suggests a period of capital investment followed by potential depreciation or asset sales.
Intangible Assets and Goodwill
Goodwill represents a significant portion of total assets, decreasing from 20.12% in 2021 to 15.77% in 2025. Other intangibles exhibit a more pronounced decline, falling from 21.70% in 2021 to 13.98% in 2024, before increasing to 19.49% in 2025. The combined trend of goodwill and other intangibles suggests potential impairment charges or strategic divestitures.
Other Assets
Other assets demonstrate an increasing trend, rising from 10.96% in 2021 to 13.75% in 2025, with a peak of 13.70% in 2024. This increase warrants further investigation to understand the composition of these assets.

Overall, the entity’s asset allocation is shifting away from intangible assets and towards current assets and, to a lesser extent, PP&E. The fluctuations in cash and cash equivalents suggest active cash management. The changes in goodwill and other intangibles may indicate strategic restructuring or adjustments to asset valuations.

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