Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

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.

Merck & Co. Inc., consolidated cash flow statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income from continuing operations 377 14,526 12,358 7,082 9,777
Amortization 2,044 2,085 1,636 1,899 1,973
Depreciation 1,828 1,824 1,578 1,726 1,679
Intangible asset impairment charges 792 1,749 302 1,718 1,040
(Income) loss from investments in equity securities, net (340) 1,419 (1,940)
Charge for the acquisition of Prometheus Biosciences, Inc. 10,217
Charge for the acquisition of Imago BioSciences, Inc. 1,192
Charge for the acquisition of Pandion Therapeutics, Inc. 1,556
Charge for the acquisition of VelosBio Inc. 2,660
Charge for the acquisition of Peloton Therapeutics, Inc. 993
Deferred income taxes (1,899) (1,568) 187 (668) (556)
Share-based compensation 645 541 479 475 417
Other 355 1,301 805 (49) 184
Accounts receivable (1,148) (644) (2,033) (1,002) 294
Inventories (816) (161) (674) (855) (508)
Trade accounts payable (380) (289) 405 724 399
Accrued and other current liabilities 1,783 (50) 277 (1,138) 376
Income taxes payable 214 380 (540) 560 (2,359)
Noncurrent liabilities 456 (545) 484 (453) (237)
Other (2,314) (1,473) (1,758) (2,426) (32)
Net changes in assets and liabilities (2,205) (2,782) (3,839) (4,590) (2,067)
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities 12,629 4,569 764 3,171 3,663
Net cash provided by operating activities 13,006 19,095 13,122 10,253 13,440
Capital expenditures (3,863) (4,388) (4,448) (4,684) (3,473)
Purchase of Seagen Inc. common stock (1,000)
Purchases of securities and other investments (955) (1,204) (1) (95) (3,202)
Proceeds from sale of Seagen Inc. common stock 1,145
Proceeds from sales of securities and other investments 1,658 721 1,026 2,812 8,622
Acquisition of Prometheus Biosciences, Inc., net of cash acquired (10,705)
Acquisition of Imago BioSciences Inc., net of cash acquired (1,327)
Acquisition of Acceleron Pharma Inc., net of cash acquired (11,174)
Acquisition of Pandion Therapeutics, Inc., net of cash acquired (1,554)
Acquisition of VelosBio Inc., net of cash acquired (2,696)
Acquisition of ArQule, Inc., net of cash acquired (2,545)
Acquisition of Antelliq Corporation, net of cash acquired (3,620)
Acquisition of Peloton Therapeutics, Inc., net of cash acquired (1,040)
Other acquisitions, net of cash acquired (121) (179) (1,365) (294)
Other (36) 32 (91) 130 378
Net cash used in investing activities (14,083) (4,960) (16,421) (9,443) (2,629)
Net change in short-term borrowings (3,986) 2,549 (3,710)
Payments on debt (1,755) (2,251) (2,319) (1,957)
Proceeds from issuance of debt 5,939 7,936 4,419 4,958
Distribution from Organon & Co. 9,000
Purchases of treasury stock (1,346) (840) (1,281) (4,780)
Dividends paid to stockholders (7,445) (7,012) (6,610) (6,215) (5,695)
Proceeds from exercise of stock options 125 384 202 89 361
Other (328) (240) (286) (436) 5
Net cash provided by (used in) financing activities (4,810) (9,119) 3,097 (2,832) (8,861)
Net cash provided by operating activities 987
Net cash used in investing activities (134)
Net cash used in financing activities (504)
Net cash flows provided by discontinued operations 349
Effect of exchange rate changes on cash, cash equivalents and restricted cash 23 (410) (133) 253 17
Net increase (decrease) in cash, cash equivalents and restricted cash (5,864) 4,606 14 (1,769) 1,967
Cash, cash equivalents and restricted cash at beginning of year 12,773 8,167 8,153 9,934 7,967
Cash, cash equivalents and restricted cash at end of year 6,909 12,773 8,167 8,165 9,934

Based on: 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), 10-K (reporting date: 2019-12-31).

Cash flow statement item Description The company
Net cash provided by operating activities Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. Merck & Co. Inc. net cash provided by operating activities increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Net cash used in investing activities Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. Merck & Co. Inc. net cash used in investing activities increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Net cash provided by (used in) financing activities Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. Merck & Co. Inc. net cash provided by (used in) financing activities decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.