Stock Analysis on Net
Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Common-Size Income Statement 
Quarterly Data

Merck & Co. Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -22.50 -22.02 -24.50 -24.49 -23.24 -22.44 -26.74 -26.71 -26.76 -27.10 -28.06 -26.30 -28.89 -33.83 -28.64 -26.23 -27.22 -30.10 -44.21 -27.73 -29.06 -27.47
Gross profit 77.50% 77.98% 75.50% 75.51% 76.76% 77.56% 73.26% 73.29% 73.24% 72.90% 71.94% 73.70% 71.11% 66.17% 71.36% 73.77% 72.78% 69.90% 55.79% 72.27% 70.94% 72.53%
Selling, general and administrative -16.76 -16.43 -18.32 -16.40 -17.00 -15.74 -19.16 -15.78 -17.97 -17.11 -19.43 -16.85 -17.21 -14.61 -20.93 -17.76 -20.01 -20.58 -24.65 -19.52 -21.87 -21.19
Research and development -25.61 -23.32 -29.34 -35.19 -21.72 -25.31 -65.80 -20.72 -88.60 -29.52 -27.30 -29.41 -19.17 -16.20 -22.68 -18.59 -37.90 -22.70 -46.64 -27.01 -19.53 -18.32
Restructuring costs -3.54 -0.44 -0.32 -0.34 -0.50 -0.78 -1.74 -0.79 -1.00 -0.46 -0.35 -0.63 -0.97 -0.33 -1.29 -0.81 -0.72 -2.79 -2.47 -0.91 -0.76 -0.60
Operating income (loss) 31.58% 37.79% 27.52% 23.58% 37.54% 35.73% -13.44% 36.00% -34.34% 25.81% 24.87% 26.82% 33.75% 35.02% 26.45% 36.61% 14.16% 23.83% -17.97% 24.83% 28.78% 32.42%
Other income (expense), net 0.04 0.23 -0.83 0.97 -0.26 0.21 -0.54 -0.79 -1.14 -0.61 0.54 -2.87 -3.00 -4.45 2.46 3.42 0.90 4.28 2.04 2.49 3.59 -0.59
Income (loss) from continuing operations before taxes 31.63% 38.01% 26.69% 24.55% 37.28% 35.94% -13.98% 35.21% -35.48% 25.20% 25.40% 23.95% 30.75% 30.57% 28.91% 40.03% 15.06% 28.11% -15.93% 27.31% 32.37% 31.83%
Taxes on income from continuing operations -3.61 -5.27 -2.73 -5.58 -3.38 -5.72 5.60 -5.45 -4.24 -5.69 -3.59 -2.21 -3.69 -3.48 -0.63 -5.28 -4.41 -2.24 -0.78 -3.85 -4.68 -5.13
Net income (loss) from continuing operations 28.01% 32.75% 23.96% 18.98% 33.89% 30.22% -8.38% 29.76% -39.72% 19.50% 21.81% 21.75% 27.06% 27.09% 28.28% 34.75% 10.65% 25.87% -16.72% 23.46% 27.69% 26.70%
Income from discontinued operations, net of taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.46 0.00 2.91 4.08 0.00 0.00 0.00 0.00
Net income (loss) 28.01% 32.75% 23.96% 18.98% 33.89% 30.22% -8.38% 29.76% -39.72% 19.50% 21.81% 21.75% 27.06% 27.09% 27.82% 34.75% 13.56% 29.95% -16.72% 23.46% 27.69% 26.70%
Net (income) loss attributable to noncontrolling interests -0.01 -0.04 -0.01 -0.02 -0.04 -0.03 0.00 -0.03 -0.02 -0.03 0.00 -0.03 -0.03 0.02 -0.03 -0.03 -0.01 -0.04 -0.02 -0.03 -0.07 0.00
Net income (loss) attributable to Merck & Co., Inc. 28.01% 32.71% 23.96% 18.95% 33.86% 30.19% -8.38% 29.73% -39.74% 19.47% 21.81% 21.71% 27.03% 27.11% 27.79% 34.72% 13.55% 29.91% -16.74% 23.43% 27.61% 26.70%

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

Cost of Sales
The cost of sales as a percentage of sales generally fluctuates within the range of approximately -22% to -33%. There is a notable spike in the quarter ending December 31, 2020, reaching -44.21%, which appears as an outlier relative to other periods. Over time, the cost of sales shows a modest downward trend, improving from around -27% in early 2020 to levels closer to -22% in the later quarters through 2025.
Gross Profit
Gross profit percentages mirror the inverse of cost of sales, ranging mostly between 65% and 78%. A significant dip to 55.79% is observed in December 2020, consistent with the spike in cost of sales mentioned previously. Following that quarter, gross profit recovers and shows an increasing trend, achieving its highest values above 77% in the quarters from mid-2024 onward.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses typically range from approximately -15% to -22% of sales. There is no clear directional trend over the periods, but some volatility is present, including a low near -14.61% in March 2022. Fluctuations occur quarter-to-quarter, with expenses slightly increasing or decreasing without a sustained upward or downward pattern.
Research and Development (R&D)
R&D expenses show considerable variability, ranging roughly from -16% to -88%, with several spikes particularly in the quarters ending December 2020 (-46.64%) and June 2023 (-88.6%). This indicates episodic increases in investment or expenditure. Aside from these spikes, the R&D percentage generally oscillates between -18% and -35%, suggesting variable but substantial commitment to research activities.
Restructuring Costs
Restructuring costs remain relatively low as a percentage of sales, usually below -1%, with occasional slightly higher values such as -2.79% in March 2021 and -3.54% in June 2025. These costs fluctuate without a consistent pattern but tend to be minor in impact compared to other expense categories.
Operating Income (Loss)
Operating income shows notable volatility, with a large negative value of -17.97% in December 2020, contrasting with generally positive percentages ranging from approximately 24% to 37% in most other periods. Substantial recoveries follow negative quarters, indicating resilience and a tendency toward strong operating profitability.
Other Income (Expense), Net
This line item oscillates around zero, with occasional positive and negative excursions. Values mostly fall between -4.45% and +4.28%, showing no clear trend but reflecting moderate variability in non-operating income or expenses.
Income from Continuing Operations Before Taxes
Income before taxes parallels operating income trends, with a significant dip to -15.93% in December 2020 but maintains overall positive results in other quarters. The range generally spans from about 23% to 40%, suggesting solid pre-tax earnings capacity outside of the notable negative quarter.
Taxes on Income from Continuing Operations
Tax expense as a percentage of sales is variable, mostly negative (reflecting tax payments), with a few positive values indicating tax benefits or reversals. The range is roughly between -5.72% and +5.6%. There are some irregularities—such as positive tax values during quarters of losses—potentially reflecting tax credits or adjustments.
Net Income from Continuing Operations
Net income excluding discontinued operations follows a pattern similar to operating income and pre-tax income, featuring a notable loss in December 2020 (-16.72%) and significant negative in June 2023 (-39.72%). Outside these periods, net income generally resides within a range of approximately 19% to 34%, indicating strong profitability in most quarters.
Income from Discontinued Operations
This appears intermittently and in limited periods, with positive values in the early part of 2021 and negative in December 2021. The impact on total net income is minor but creates slight variations in reported earnings during these few quarters.
Net Income (Loss) and Attributable to the Company
Net income including discontinued operations follows the pattern of income from continuing operations with occasional adjustments due to discontinued segments. The overall trend signals robust profitability except for the sharp negative quarters mentioned, notably December 2020 and June 2023. The net income attributable to the company tracks closely with total net income, differing only marginally due to effects from noncontrolling interests, which remain insignificant throughout the periods.