Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Loans payable and current portion of long-term debt 2,649 1,372 1,946 2,412 6,431
Trade accounts payable 4,079 3,922 4,264 4,609 4,594
Accrued and other current liabilities 15,694 15,766 14,159 13,859 13,053
Income taxes payable 3,914 2,649 1,986 1,224 1,575
Dividends payable 2,084 1,985 1,884 1,768 1,674
Current liabilities 28,420 25,694 24,239 23,872 27,327
Long-term debt, excluding current portion 34,462 33,683 28,745 30,690 25,360
Deferred income taxes 1,387 871 1,795 3,441 1,015
Other noncurrent liabilities 6,465 8,792 8,323 9,434 12,482
Noncurrent liabilities 42,314 43,346 38,863 43,565 38,857
Total liabilities 70,734 69,040 63,102 67,437 66,184
Common stock, $0.50 par value 1,788 1,788 1,788 1,788 1,788
Other paid-in capital 44,704 44,509 44,379 44,238 39,588
Retained earnings 63,069 53,895 61,081 53,696 47,362
Accumulated other comprehensive loss (4,945) (5,161) (4,768) (4,429) (6,634)
Treasury stock, at cost (58,303) (57,450) (56,489) (57,109) (56,787)
Total Merck & Co., Inc. stockholders’ equity 46,313 37,581 45,991 38,184 25,317
Noncontrolling interests 59 54 67 73 87
Total equity 46,372 37,635 46,058 38,257 25,404
Total liabilities and equity 117,106 106,675 109,160 105,694 91,588

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 indicates several key trends in liabilities and shareholders' equity over the five-year period ending in 2024.

Current Liabilities
The total current liabilities decreased from 27,327 million USD in 2020 to 23,872 million USD in 2021, then showed a slight increase through 2024, ending at 28,420 million USD. This variation is influenced by the notable fluctuations in loans payable and current portion of long-term debt, which initially decreased sharply from 6,431 million USD in 2020 to 1,372 million USD in 2023, before rising again to 2,649 million USD in 2024. Trade accounts payable showed a gradual decline until 2023, with a minor uptick in 2024. Accrued and other current liabilities steadily increased over the period, indicating rising short-term financial obligations. Income taxes payable and dividends payable both trended upward, with income taxes payable almost doubling from 1,575 million USD in 2020 to 3,914 million USD in 2024.
Noncurrent Liabilities
Long-term debt, excluding the current portion, increased consistently from 25,360 million USD in 2020 to 34,462 million USD in 2024, indicating growing long-term borrowing. Deferred income taxes showed volatility, peaking in 2021 but declining significantly in subsequent years with a slight uptick in 2024. Other noncurrent liabilities decreased overall, from 12,482 million USD in 2020 to 6,465 million USD in 2024, reflecting reductions in certain long-term obligations. Total noncurrent liabilities fluctuated but remained within a similar range from year to year, ending at 42,314 million USD in 2024, slightly below the 2021 peak.
Total Liabilities
Total liabilities exhibited some variability, initially increasing from 66,184 million USD in 2020 to 67,437 million USD in 2021, then falling to 63,102 million USD in 2022 before rising again to 70,734 million USD in 2024. This pattern suggests fluctuating reliance on borrowed funds and accrued obligations but overall a moderate upward trajectory in total liabilities toward the end of the period.
Shareholders' Equity
Shareholders' equity experienced significant increases, rising from 25,317 million USD in 2020 to 38,184 million USD in 2021 and peaking at 45,991 million USD in 2022. It then declined to 37,581 million USD in 2023 before rebounding to 46,313 million USD in 2024. Key factors impacting equity include steady growth in other paid-in capital and retained earnings, though retained earnings displayed some volatility, dipping in 2023 before recovering. Treasury stock increased in cost consistently, which reduces equity, and accumulated other comprehensive loss slightly expanded in absolute terms before showing a modest reduction in 2024.
Total Liabilities and Equity
The sum of total liabilities and equity increased steadily over the period from 91,588 million USD in 2020 to 117,106 million USD in 2024, demonstrating an overall expansion in the company's financial base, reflecting growth in both its financial obligations and net assets.

In summary, the data reveals a trend of moderate growth in total liabilities and equity, with fluctuations in debt levels and ongoing increases in accrued liabilities and taxes payable. The company's equity base expanded substantially during the period, driven by increases in paid-in capital and retained earnings despite some variability. The trends suggest active management of debt and equity financing alongside growth in operational and financial obligations.