Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Merck & Co. Inc., consolidated statement of comprehensive income
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 analysis of the financial data over the periods from December 31, 2020 to December 31, 2024 reveals several notable trends across key income measures and comprehensive income components.
- Net Income
- Net income displays significant fluctuations throughout the periods. It increased substantially from 7,082 million US$ in 2020 to 13,062 million US$ in 2021, followed by a moderate increase to 14,526 million US$ in 2022. However, there is a sharp decline to 377 million US$ in 2023, before rebounding strongly to 17,133 million US$ in 2024. This pattern indicates considerable volatility, particularly the drastic drop in 2023 and recovery thereafter.
- Net Unrealized Income (Loss) on Derivatives, Net of Reclassifications
- This metric shows variability with negative figures in 2020 (-297 million US$), 2022 (-71 million US$), and 2023 (-97 million US$), while positive values appear in 2021 (410 million US$) and 2024 (266 million US$). The alternating signs suggest exposure to derivative-related market fluctuations impacting unrealized gains and losses.
- Net Unrealized Gain (Loss) on Investments, Net of Reclassifications
- Data for this item is limited, showing a small negative figure in 2020 (-18 million US$) and missing values for subsequent years, which precludes detailed trend analysis.
- Benefit Plan Net Gain (Loss) and Prior Service Credit (Cost), Net of Amortization
- This item exhibits considerable variability, with a large net loss of 279 million US$ in 2020 turning into a substantial net gain of 1,769 million US$ in 2021. The value then decreases to 335 million US$ in 2022, swings to a net loss of 385 million US$ in 2023, and recovers to 466 million US$ in 2024. These fluctuations may reflect changes in actuarial assumptions and benefit plan performance over time.
- Cumulative Translation Adjustment
- The cumulative translation adjustment largely trends negatively, starting modestly positive in 2020 (153 million US$), declining to -423 million US$ in 2021, with further deterioration to -603 million US$ in 2022. A brief positive movement to 89 million US$ occurs in 2023, followed by a fall back to -516 million US$ in 2024. This pattern indicates ongoing currency translation exposure and its impact on comprehensive income.
- Other Comprehensive Income (Loss) Net of Taxes
- This measure generally aligns with the trends in other comprehensive components, with a negative figure in 2020 (-441 million US$), a sharp positive spike in 2021 (1,756 million US$), followed by negative results in both 2022 (-339 million US$) and 2023 (-393 million US$), and a turnaround to a positive result of 216 million US$ in 2024.
- Comprehensive Income (Loss)
- Comprehensive income, which aggregates net income and other comprehensive income elements, also reflects volatility. It rises from 6,641 million US$ in 2020 to 14,818 million US$ in 2021 and remains elevated at 14,187 million US$ in 2022. However, it plunges to a slight loss of 16 million US$ in 2023 before recovering to 17,349 million US$ in 2024. These swings underscore the pronounced effects of both net income volatility and other comprehensive income fluctuations on total comprehensive income.
- Comprehensive Income Attributable to Noncontrolling Interests
- The value attributed to noncontrolling interests remains negative and relatively stable across all years, ranging from -7 million US$ to -16 million US$, indicating a consistent minor outflow attributable to minority interests within equity classification.
- Comprehensive Income (Loss) Attributable to Merck & Co., Inc.
- The comprehensive income attributable to the company follows the same pattern as the total comprehensive income, experiencing significant growth from 6,626 million US$ in 2020 to 14,805 million US$ in 2021, a slight decline to 14,180 million US$ in 2022, a marginal loss of 28 million US$ in 2023, and a strong recovery to 17,333 million US$ in 2024. This reflects the primary impact of income fluctuations largely attributable to the company itself rather than minority interests.
Overall, the data indicates a period of financial volatility characterized by significant swings in net income and comprehensive income components. The substantial dip in 2023 across many metrics is followed by a pronounced recovery in 2024. Changes in derivatives, benefit plan performance, and currency translation adjustments contribute notably to the variability in comprehensive income during this timeframe.