Stock Analysis on Net
Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Merck & Co. Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Loans payable and current portion of long-term debt 1.89 2.26 1.29 1.78 2.28
Trade accounts payable 3.22 3.48 3.68 3.91 4.36
Accrued and other current liabilities 10.57 13.40 14.78 12.97 13.11
Income taxes payable 3.45 3.34 2.48 1.82 1.16
Dividends payable 1.56 1.78 1.86 1.73 1.67
Current liabilities 20.70% 24.27% 24.09% 22.21% 22.59%
Long-term debt, excluding current portion 34.16 29.43 31.58 26.33 29.04
Deferred income taxes 1.05 1.18 0.82 1.64 3.26
Other noncurrent liabilities 5.62 5.52 8.24 7.62 8.93
Noncurrent liabilities 40.83% 36.13% 40.63% 35.60% 41.22%
Total liabilities 61.52% 60.40% 64.72% 57.81% 63.80%
Common stock, $0.50 par value 1.31 1.53 1.68 1.64 1.69
Other paid-in capital 32.90 38.17 41.72 40.66 41.85
Retained earnings 53.39 53.86 50.52 55.96 50.80
Accumulated other comprehensive loss -3.13 -4.22 -4.84 -4.37 -4.19
Treasury stock, at cost -46.03 -49.79 -53.86 -51.75 -54.03
Total Merck & Co., Inc. stockholders’ equity 38.44% 39.55% 35.23% 42.13% 36.13%
Noncontrolling interests 0.04 0.05 0.05 0.06 0.07
Total equity 38.48% 39.60% 35.28% 42.19% 36.20%
Total liabilities and equity 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 composition of liabilities and stockholders’ equity exhibited several notable shifts between 2021 and 2025. Overall, total liabilities decreased as a percentage of total liabilities and equity from 63.80% to 61.52%, while total equity increased from 36.20% to 38.48% over the same period, though with some fluctuations.

Current Liabilities
Current liabilities, representing 22.59% of the total in 2021, initially increased to 24.27% in 2024 before decreasing to 20.70% in 2025. This fluctuation was driven by changes in accrued and other current liabilities, which rose from 13.11% to 14.78% then fell to 10.57%, and income taxes payable, which increased from 1.16% to 3.45%. Trade accounts payable demonstrated a consistent, albeit gradual, decline from 4.36% to 3.22%.
Long-Term Debt
Long-term debt, excluding the current portion, showed an increasing trend, rising from 29.04% in 2021 to 34.16% in 2025. This indicates a growing reliance on long-term financing. Conversely, loans payable and the current portion of long-term debt decreased from 2.28% to 1.89% over the period.
Equity Components
Within stockholders’ equity, retained earnings experienced considerable volatility, peaking at 55.96% in 2022 before declining to 53.39% in 2025. Other paid-in capital decreased steadily from 41.85% to 32.90%. Treasury stock consistently represented a significant portion of equity, with a negative percentage ranging from -51.75% to -46.03%, indicating substantial share repurchase activity. Common stock remained relatively stable, though slightly decreasing from 1.69% to 1.31%. Accumulated other comprehensive loss also decreased in absolute value, moving from -4.19% to -3.13%.
Noncurrent Liabilities
Noncurrent liabilities decreased from 41.22% in 2021 to 36.13% in 2024, then increased to 40.83% in 2025. Deferred income taxes showed a marked decrease from 3.26% to 0.82% before a slight recovery to 1.05%, while other noncurrent liabilities also decreased from 8.93% to 5.62%.

The shifts in the balance sheet suggest a dynamic financial strategy, with adjustments in both short-term and long-term financing, alongside active management of equity through retained earnings and share repurchases. The increasing proportion of long-term debt warrants further investigation into the associated interest expense and debt covenants.

AI Ask an analyst for more