Cash Flow Statement
The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
Paying user area
Try for free
Merck & Co. Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Merck & Co. Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Merck & Co. Inc., consolidated cash flow statement
US$ in millions
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 company demonstrates fluctuating cash flows over the five-year period. Operating activities consistently provide positive cash flow, though with significant variation. Investing activities consistently represent a cash outflow, largely driven by acquisitions, particularly in 2023 and 2025. Financing activities exhibit considerable volatility, shifting between providing and using cash, influenced by debt issuance, stock repurchases, and dividend payments.
- Operating Activities
- Net cash provided by operating activities generally increased from $13.122 billion in 2021 to $19.095 billion in 2022. A substantial decrease was observed in 2023 to $13.006 billion, followed by a rise to $21.468 billion in 2024. A decline to $16.472 billion occurred in 2025. This variability appears linked to adjustments reconciling net income to cash flow, which experienced a large positive swing in 2023 ($12.629 billion) and a negative swing in 2025 (-$1.791 billion). Net income from continuing operations also shows significant fluctuation, particularly the sharp decline in 2023 and subsequent recovery.
- Investing Activities
- Net cash used in investing activities is consistently negative, indicating ongoing investment. The outflow was most substantial in 2021 at -$16.421 billion, largely due to the acquisition of Acceleron Pharma Inc. and Pandion Therapeutics, Inc. Outflows remained significant in subsequent years, with a peak in 2025 at -$13.741 billion, primarily due to the acquisition of Verona Pharma plc. A pattern of frequent acquisitions is evident, with multiple acquisitions recorded in 2024 and 2025. Proceeds from sales of securities and other investments offer a partial offset to these outflows, but are considerably smaller in magnitude.
- Financing Activities
- Financing activities demonstrate considerable fluctuation. 2021 saw net cash provided by financing activities of $3.097 billion, largely driven by proceeds from the distribution related to Organon & Co. and debt issuance. 2022 and 2024 experienced significant net cash outflows, primarily due to stock repurchases and dividend payments. 2025 also showed a net cash outflow, driven by increased dividend payments and a substantial repurchase of treasury stock. Proceeds from debt issuance were a consistent, though varying, source of cash inflow.
- Cash Position
- The company maintained a healthy cash position throughout the period. Cash, cash equivalents, and restricted cash increased from $8.153 billion in 2021 to $14.690 billion in 2025, despite substantial investing and financing outflows. The largest increase occurred between 2023 and 2024, coinciding with a peak in operating cash flow and significant debt issuance.
- Working Capital
- Changes in accounts receivable, inventories, and trade accounts payable generally resulted in cash inflows, though with varying magnitudes. Accrued and other current liabilities exhibited significant volatility, contributing to both inflows and outflows. The net changes in assets and liabilities consistently represented a cash outflow, though the magnitude increased substantially in 2024 and 2025.
Overall, the company’s cash flow profile is characterized by strong operating cash generation, significant investment in acquisitions, and active management of financing activities, including debt and equity. The substantial acquisitions, particularly in 2023, 2024, and 2025, are a defining feature of the company’s financial activity during this period.