Stock Analysis on Net
Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

$24.99

Net Profit Margin
since 2005

Microsoft Excel

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Calculation

Merck & Co. Inc., net profit margin, long-term trends, calculation

Microsoft Excel
Net profit margin = 100 × Net income attributable to Merck & Co., Inc.1 ÷ Sales1
Dec 31, 2025 = 100 × ÷
Dec 31, 2024 = 100 × ÷
Dec 31, 2023 = 100 × ÷
Dec 31, 2022 = 100 × ÷
Dec 31, 2021 = 100 × ÷
Dec 31, 2020 = 100 × ÷
Dec 31, 2019 = 100 × ÷
Dec 31, 2018 = 100 × ÷
Dec 31, 2017 = 100 × ÷
Dec 31, 2016 = 100 × ÷
Dec 31, 2015 = 100 × ÷
Dec 31, 2014 = 100 × ÷
Dec 31, 2013 = 100 × ÷
Dec 31, 2012 = 100 × ÷
Dec 31, 2011 = 100 × ÷
Dec 31, 2010 = 100 × ÷
Dec 31, 2009 = 100 × ÷
Dec 31, 2008 = 100 × ÷
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Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

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), 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

The net profit margin exhibited considerable fluctuation over the period from 2005 to 2025. Initial years showed relatively high margins, followed by a period of volatility and then a return to stronger performance in later years, though with a significant dip in 2022.

Initial Period (2005-2007)
From 2005 to 2007, the net profit margin decreased from 21.04% to 13.54%. This represents a consistent downward trend, suggesting increasing costs or pricing pressures during this timeframe. While sales increased, the rate of income growth did not keep pace.
Volatility and Peak (2008-2009)
A dramatic increase occurred in 2008, with the net profit margin reaching 32.74%, followed by an exceptionally high value of 47.04% in 2009. This substantial improvement likely reflects specific events impacting profitability in those years, potentially including cost reductions or significant gains from particular products or business segments. However, this was not sustained.
Subsequent Decline and Stabilization (2010-2012)
The net profit margin experienced a sharp decline in 2010, falling to 1.87%, before stabilizing in the 13.05% range for 2011 and 2012. The 2010 drop indicates a significant challenge to profitability, potentially linked to increased expenses or a shift in sales mix. The subsequent stabilization suggests corrective actions were taken, but did not fully restore earlier levels.
Moderate Fluctuations (2013-2017)
The period from 2013 to 2017 showed moderate fluctuations, ranging from 10.00% to 28.22%. The margin peaked in 2014 at 28.22% and then trended downwards, reaching a low of 5.97% in 2017. This period suggests a degree of sensitivity to external factors or internal operational changes.
Recent Trends (2018-2025)
From 2018 to 2021, the net profit margin generally increased, reaching 26.79% in 2021. However, a substantial decrease to 0.61% occurred in 2022, representing a significant disruption to profitability. The margin rebounded strongly in 2023 and 2024, reaching 26.68% and 28.08% respectively, indicating a recovery. The latest value in 2025 is 28.08%, consistent with the recent recovery.

Overall, the net profit margin demonstrates a pattern of significant variability. While long-term sales have generally increased, profitability has been subject to considerable swings, with a particularly pronounced downturn in 2022 followed by a strong recovery in subsequent years. Further investigation would be required to determine the underlying drivers of these fluctuations.

Comparison to Competitors

Merck & Co. Inc., net profit margin, 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, 2025
Dec 31, 2024
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Dec 31, 2005

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), 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., net profit margin, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel
Merck & Co. Inc. Pharmaceuticals, Biotechnology & Life Sciences
Dec 31, 2025
Dec 31, 2024
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Dec 31, 2021
Dec 31, 2020
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Dec 31, 2018
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Dec 31, 2005

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), 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., net profit margin, long-term trends, comparison to industry (health care)

Microsoft Excel
Merck & Co. Inc. Health Care
Dec 31, 2025
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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), 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).