Balance Sheet: Liabilities and Stockholders’ Equity

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.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Loans payable and current portion of long-term debt	2,589)	2,649)	1,372)	1,946)	2,412)
Trade accounts payable	4,404)	4,079)	3,922)	4,264)	4,609)
Accrued and other current liabilities	14,468)	15,694)	15,766)	14,159)	13,859)
Income taxes payable	4,726)	3,914)	2,649)	1,986)	1,224)
Dividends payable	2,140)	2,084)	1,985)	1,884)	1,768)
Current liabilities	28,327)	28,420)	25,694)	24,239)	23,872)
Long-term debt, excluding current portion	46,750)	34,462)	33,683)	28,745)	30,690)
Deferred income taxes	1,439)	1,387)	871)	1,795)	3,441)
Other noncurrent liabilities	7,688)	6,465)	8,792)	8,323)	9,434)
Noncurrent liabilities	55,877)	42,314)	43,346)	38,863)	43,565)
Total liabilities	84,204)	70,734)	69,040)	63,102)	67,437)
Common stock, $0.50 par value	1,788)	1,788)	1,788)	1,788)	1,788)
Other paid-in capital	45,029)	44,704)	44,509)	44,379)	44,238)
Retained earnings	73,075)	63,069)	53,895)	61,081)	53,696)
Accumulated other comprehensive loss	(4,287)	(4,945)	(5,161)	(4,768)	(4,429)
Treasury stock, at cost	(62,999)	(58,303)	(57,450)	(56,489)	(57,109)
Total Merck & Co., Inc. stockholders’ equity	52,606)	46,313)	37,581)	45,991)	38,184)
Noncontrolling interests	56)	59)	54)	67)	73)
Total equity	52,662)	46,372)	37,635)	46,058)	38,257)
Total liabilities and equity	136,866)	117,106)	106,675)	109,160)	105,694)

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).

An examination of the provided financial information reveals notable shifts in the company’s liabilities and stockholders’ equity between 2021 and 2025. Total liabilities generally increased over the period, while stockholders’ equity experienced fluctuations. A more detailed analysis follows.

Total Liabilities: Total liabilities decreased from US$67.437 billion in 2021 to US$63.102 billion in 2022, then increased to US$69.040 billion in 2023. This upward trend continued into 2024, reaching US$70.734 billion, before a more substantial increase to US$84.204 billion in 2025. This suggests a growing reliance on debt financing or an increase in other obligations in recent years.
Current Liabilities: Current liabilities exhibited a consistent increase from US$23.872 billion in 2021 to US$28.327 billion in 2025. Within this category, accrued and other current liabilities consistently represented the largest component, increasing from US$13.859 billion to US$14.468 billion. Income taxes payable also showed a significant increase, rising from US$1.224 billion in 2021 to US$4.726 billion in 2025. This indicates a potential increase in short-term obligations and tax burdens.
Noncurrent Liabilities: Noncurrent liabilities decreased from US$43.565 billion in 2021 to US$38.863 billion in 2022, then increased to US$43.346 billion in 2023 and remained relatively stable at US$42.314 billion in 2024. A significant increase was observed in 2025, reaching US$55.877 billion. This increase was primarily driven by a substantial rise in long-term debt, excluding the current portion, which increased from US$30.690 billion in 2021 to US$46.750 billion in 2025.
Stockholders’ Equity: Total stockholders’ equity increased from US$38.184 billion in 2021 to US$45.991 billion in 2022, but then decreased to US$37.581 billion in 2023. It subsequently increased to US$46.313 billion in 2024 and further to US$52.606 billion in 2025. This fluctuation is largely attributable to changes in retained earnings and treasury stock. Retained earnings increased significantly from US$53.696 billion in 2021 to US$73.075 billion in 2025, indicating profitability and reinvestment of earnings. However, treasury stock increased in absolute value (becoming more negative) from -US$57.109 billion in 2021 to -US$62.999 billion in 2025, suggesting increased share repurchases.
Common Stock and Additional Paid-In Capital: Common stock remained constant throughout the period at US$1.788 billion. Other paid-in capital experienced a modest, consistent increase from US$44.238 billion in 2021 to US$45.029 billion in 2025, likely due to stock-based compensation or other equity transactions.
Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss increased in absolute value from -US$4.429 billion in 2021 to -US$5.161 billion in 2023, before decreasing slightly to -US$4.287 billion in 2025. This suggests unrealized losses on certain investments or hedging activities.

Overall, the company’s financial position demonstrates a growing total liability base, particularly in long-term debt, alongside fluctuating stockholders’ equity driven by retained earnings and share repurchase activity. The increase in current liabilities, specifically income taxes payable, also warrants attention.

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Merck & Co. Inc. (NYSE:MRK)

Balance Sheet: Liabilities and Stockholders’ Equity