Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Merck & Co. Inc., consolidated balance sheet: assets
US$ in millions
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 notable trends in the company's asset composition over the five-year period.
- Cash and cash equivalents
- This category experienced significant fluctuations. Starting at $8,062 million in 2020, it remained stable through 2021 before rising sharply to $12,694 million in 2022. However, there was a steep decline to $6,841 million in 2023, followed by an equally strong recovery to $13,242 million in 2024. This volatility suggests active cash management or liquidity events occurring in alternating years.
- Short-term investments
- Data is missing for the first two years. In 2022, short-term investments appeared at $498 million, decreased to $252 million in 2023, and then increased again to $447 million in 2024. The values remain relatively small compared to cash balances but show a similar pattern of fluctuation.
- Accounts receivable, net
- A steady increase has been observed in net accounts receivable, from $7,851 million in 2020 to a peak of $10,349 million in 2023, slightly decreasing to $10,278 million in 2024. This gradual rise indicates growing sales on credit or extended payment terms over the period.
- Inventories
- Inventories exhibited minor fluctuations, starting at $6,310 million in 2020, declining through 2021 and 2022, then rising to $6,358 million in 2023 before declining again to $6,109 million in 2024. Overall, inventory levels have remained relatively stable with small variances.
- Other current assets
- There is a consistent upward trend in other current assets, increasing from $5,541 million in 2020 to $8,706 million in 2024, indicating growth in miscellaneous current asset categories.
- Current assets
- Total current assets increased overall from $27,764 million in 2020 to $38,782 million in 2024. There was a notable peak in 2022 at $35,722 million, a dip in 2023, and a recovery in 2024, reflecting the volatility observed in cash and short-term investments.
- Investments
- Long-term investments showed irregular movements with no clear trend: a decline from $785 million in 2020 to $370 million in 2021, a spike to $1,015 million in 2022, a sharp drop to $252 million in 2023, and a recovery to $463 million in 2024.
- Property, plant and equipment (net)
- A steady upward trend is evident, with net PP&E increasing each year from $17,986 million in 2020 to $23,779 million in 2024, suggesting ongoing capital investments and asset growth.
- Goodwill
- Goodwill levels have remained relatively stable, hovering around $21,200 million with minor variations, indicating no major acquisitions or write-downs impacting this asset category.
- Other intangibles, net
- Other intangibles decreased consistently from a peak of $22,933 million in 2021 to $16,370 million in 2024, indicating amortization or impairment over the years.
- Other assets
- Other noncurrent assets showed volatility but an overall increasing trend, rising from $10,211 million in 2020 to $16,044 million in 2024, with a significant increase in the final year. This suggests accumulation of miscellaneous long-term assets.
- Noncurrent assets
- Noncurrent assets increased from $63,824 million in 2020 to $78,324 million in 2024, with some fluctuation in the cohort years, reflecting the changes in PP&E, intangibles, goodwill, and investments.
- Total assets
- Total assets grew from $91,588 million in 2020 to $117,106 million in 2024. This growth, albeit with fluctuations in certain years, indicates an overall expansion of the asset base, driven primarily by increases in both current and noncurrent assets.