Stock Analysis on Net
Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Debt to Equity 
since 2005

Microsoft Excel

Calculation

Merck & Co. Inc., debt to equity, long-term trends, calculation

Microsoft Excel
Debt to equity = Total debt1 ÷ Total Merck & Co., Inc. stockholders’ equity1
Dec 31, 2024 0.80 = 37,111 ÷ 46,313
Dec 31, 2023 0.93 = 35,055 ÷ 37,581
Dec 31, 2022 0.67 = 30,691 ÷ 45,991
Dec 31, 2021 0.87 = 33,102 ÷ 38,184
Dec 31, 2020 1.26 = 31,791 ÷ 25,317
Dec 31, 2019 1.02 = 26,346 ÷ 25,907
Dec 31, 2018 0.94 = 25,114 ÷ 26,701
Dec 31, 2017 0.71 = 24,410 ÷ 34,336
Dec 31, 2016 0.62 = 24,842 ÷ 40,088
Dec 31, 2015 0.59 = 26,514 ÷ 44,676
Dec 31, 2014 0.44 = 21,403 ÷ 48,647
Dec 31, 2013 0.50 = 25,060 ÷ 49,765
Dec 31, 2012 0.39 = 20,569 ÷ 53,020
Dec 31, 2011 0.32 = 17,515 ÷ 54,517
Dec 31, 2010 0.33 = 17,882 ÷ 54,376
Dec 31, 2009 0.30 = 17,454 ÷ 59,058
Dec 31, 2008 0.33 = 6,240 ÷ 18,758
Dec 31, 2007 0.32 = 5,739 ÷ 18,185
Dec 31, 2006 0.39 = 6,836 ÷ 17,560
Dec 31, 2005 0.45 = 8,098 ÷ 17,917

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

Total Debt
The total debt of the company showed significant fluctuations over the analyzed period. From 2005 to 2008, debt remained relatively stable, hovering between approximately $5.7 billion and $8.1 billion. However, there was a marked increase in 2009 to over $17 billion, followed by a sustained period of elevated debt levels fluctuating between roughly $17.5 billion and $26.3 billion through 2015. After reaching a peak near $33 billion in 2021, the debt level somewhat declined to about $31 billion in 2022, only to rise again toward $37 billion by 2024. This indicates a trend toward greater leverage in recent years, with some volatility around the peak years.
Total Stockholders’ Equity
Stockholders’ equity demonstrated a general upward trend in the early years, growing from about $17.9 billion in 2005 to approximately $18.8 billion by 2008. A significant surge occurred in 2009, with equity jumping to nearly $59.1 billion, likely tied to major accounting or business events. Post-2009, equity steadily declined over several years, reaching a low near $25.3 billion in 2020. From 2021 onwards, equity rebounded significantly, recovering to around $46.3 billion by 2024, suggesting strong capital base restoration after earlier declines.
Debt to Equity Ratio
The debt to equity ratio remained relatively low and stable from 2005 through 2008, ranging from 0.32 to 0.45. This ratio dropped to its lowest point around 0.3 in 2009, corresponding to the spike in equity. Subsequently, the ratio increased steadily, crossing the 0.5 mark in 2013 and peaking above 1.26 in 2020, indicating that debt levels exceeded equity at that time. The ratio then decreased to around 0.67 in 2022, followed by fluctuations ending near 0.8 in 2024. Overall, the ratio reveals a shift from lower leverage to elevated leverage during the middle years, followed by a partial deleveraging trend more recently.
Summary
The data reflects a period of financial transformation for the company, marked by a dramatic increase in both debt and equity around 2009, followed by several years of declining equity and rising leverage, culminating in a peak debt to equity ratio in 2020. Since then, the company appears to have strengthened its equity position and reduced relative leverage, although debt levels remain high compared to the earlier period. These trends suggest strategic financing decisions aimed at balancing growth and capital structure stability amid varying market or operational conditions.

Comparison to Competitors

Merck & Co. Inc., debt to equity, long-term trends, comparison to competitors

Microsoft Excel
Merck & Co. Inc. AbbVie Inc. Amgen Inc. Bristol-Myers Squibb Co. Danaher Corp. Eli Lilly & Co. Gilead Sciences Inc. Johnson & Johnson Pfizer Inc. Regeneron Pharmaceuticals Inc. Thermo Fisher Scientific Inc. Vertex Pharmaceuticals Inc.
Dec 31, 2024 0.80 20.19 10.23 3.04 0.32 2.37 1.38 0.51 0.73 0.09 0.63 0.01
Dec 31, 2023 0.93 5.73 10.37 1.35 0.34 2.34 1.09 0.43 0.81 0.10 0.75 0.02
Dec 31, 2022 0.67 3.67 10.64 1.27 0.39 1.52 1.19 0.52 0.37 0.12 0.78 0.03
Dec 31, 2021 0.87 4.98 4.97 1.24 0.49 1.88 1.27 0.46 0.50 0.14 0.85 0.06
Dec 31, 2020 1.26 6.58 3.51 1.34 0.53 2.94 1.73 0.56 0.63 0.24 0.63 0.07
Dec 31, 2019 1.02 — 3.09 0.91 0.72 5.88 1.09 0.47 0.83 0.06 0.60 0.09
Dec 31, 2018 0.94 — 2.71 0.52 0.35 1.30 1.28 0.51 0.66 0.08 0.69 0.13
Dec 31, 2017 0.71 7.33 1.40 0.68 0.40 1.18 1.64 0.57 0.60 0.11 0.83 0.29
Dec 31, 2016 0.62 7.95 1.16 0.41 0.53 0.74 1.39 0.39 0.71 0.11 0.77 0.71
Dec 31, 2015 0.59 8.03 1.12 0.47 0.54 0.55 1.20 0.28 0.60 0.10 0.59 0.86
Dec 31, 2014 0.44 8.62 1.19 0.53 0.15 0.52 0.80 0.27 0.51 0.18 0.71 0.75
Dec 31, 2013 0.50 3.28 1.45 0.55 0.16 0.30 0.58 0.25 0.48 0.26 0.62 0.36
Dec 31, 2012 0.39 4.66 1.39 0.54 0.28 0.37 0.88 0.25 0.46 0.37 0.46 0.68
Dec 31, 2011 0.32 — 1.13 0.34 0.31 0.52 1.13 0.34 0.47 0.90 0.47 0.58
Dec 31, 2010 0.33 — 0.56 0.35 0.21 0.56 0.59 0.30 0.50 0.31 0.14 1.07
Dec 31, 2009 0.30 — 0.47 0.43 0.25 0.70 0.18 0.29 0.54 0.27 0.14 0.14
Dec 31, 2008 0.33 — 0.50 0.55 0.27 1.55 0.31 0.28 0.30 0.00 0.14 1.20
Dec 31, 2007 0.32 — 0.63 0.59 0.41 0.37 0.38 0.22 0.20 0.43 0.15 0.07
Dec 31, 2006 0.39 — 0.48 0.74 0.37 0.34 0.77 0.17 0.11 0.92 0.19 0.24
Dec 31, 2005 0.45 — 0.19 0.77 0.21 0.60 0.10 0.07 0.27 1.75 0.21 0.75

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., debt to equity, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel
Merck & Co. Inc. Pharmaceuticals, Biotechnology & Life Sciences
Dec 31, 2024 0.80 1.04
Dec 31, 2023 0.93 0.97
Dec 31, 2022 0.67 0.80
Dec 31, 2021 0.87 0.93
Dec 31, 2020 1.26 1.12
Dec 31, 2019 1.02 1.09
Dec 31, 2018 0.94 0.93
Dec 31, 2017 0.71 0.87
Dec 31, 2016 0.62 0.79
Dec 31, 2015 0.59 0.68
Dec 31, 2014 0.44 0.55
Dec 31, 2013 0.50 0.52
Dec 31, 2012 0.39 0.51
Dec 31, 2011 0.32 0.46
Dec 31, 2010 0.33 0.40
Dec 31, 2009 0.30 0.39
Dec 31, 2008 0.33 0.37
Dec 31, 2007 0.32 0.30
Dec 31, 2006 0.39 0.25
Dec 31, 2005 0.45 0.29

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)

Merck & Co. Inc., debt to equity, long-term trends, comparison to industry (health care)

Microsoft Excel
Merck & Co. Inc. Health Care
Dec 31, 2024 0.80 0.87
Dec 31, 2023 0.93 0.82
Dec 31, 2022 0.67 0.73
Dec 31, 2021 0.87 0.79
Dec 31, 2020 1.26 0.92
Dec 31, 2019 1.02 0.92
Dec 31, 2018 0.94 0.86
Dec 31, 2017 0.71 0.81
Dec 31, 2016 0.62 0.76
Dec 31, 2015 0.59 0.69
Dec 31, 2014 0.44 0.52
Dec 31, 2013 0.50 0.49
Dec 31, 2012 0.39 0.51
Dec 31, 2011 0.32 0.45
Dec 31, 2010 0.33 0.42
Dec 31, 2009 0.30 0.41
Dec 31, 2008 0.33 0.41
Dec 31, 2007 0.32 0.36
Dec 31, 2006 0.39 0.33
Dec 31, 2005 0.45 0.30

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).