Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

$24.99

Current Ratio
since 2005

Microsoft Excel

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Calculation

Merck & Co. Inc., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


Current Assets Trend
Current assets exhibited fluctuations over the analyzed period. Starting at $21,049 million in 2005, there was a decline through 2006 and 2007 to approximately $15,000 million levels. From 2008 onward, a notable growth phase is observed, with current assets increasing to a peak around $35,722 million in 2022. However, this peak was followed by a moderate reduction in 2023, before rising again in 2024 to nearly $38,782 million. This overall upward trend post-2007 suggests an expanding asset base.
Current Liabilities Trend
Current liabilities also showed variability but with a generally increasing trend over the years. After starting at $13,304 million in 2005, liabilities remained relatively stable from 2006 through 2009, fluctuating near the $15,000 million mark. From 2010 to 2016, liabilities increased moderately, reaching levels around $18,600 million. A pronounced rise took place between 2017 and 2020, peaking at $27,327 million in 2020. Following this peak, liabilities decreased somewhat in the subsequent years but rose again by 2024 to $28,420 million, indicating increased short-term obligations.
Current Ratio Analysis
The current ratio showed variability reflecting changes in liquidity. Initially strong at 1.58 in 2005, the ratio declined to a low near 1.2 in 2006 and 2007. From 2008 through 2011, the ratio improved, surpassing 2.0 in 2011, indicating healthy liquidity. Thereafter, a downward trend in the current ratio ensued, reaching a low point of approximately 1.02 in 2019, signaling tighter liquidity conditions at that time. Subsequently, there was a recovery with the ratio climbing above 1.4 in 2022 but falling back slightly thereafter. The current ratio remaining mostly above 1.0 suggests that current assets continue to cover current liabilities, but with periods of tightening liquidity levels.
Overall Financial Position Insight
The data reflect an overall growth in both current assets and liabilities, with assets generally increasing at a stronger pace. This dynamic, coupled with fluctuations in the current ratio, suggests an evolving liquidity profile where the company managed to maintain coverage of short-term obligations despite periodic pressures. Peaks in liabilities and troughs in the current ratio coincide, indicating phases where short-term debt increased faster than asset accumulation. The improvement in current assets in recent years coupled with a maintained current ratio above one suggests an adaptive approach to liquidity management amid changing operational conditions.

Comparison to Competitors

Merck & Co. Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)

Merck & Co. Inc., current ratio, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Health Care)