Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

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Calculation

Merck & Co. Inc., ROA, 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


Net Income
The net income attributable to the company displayed a volatile trend over the observed period. Starting at 4,631 million USD in 2005, it initially declined modestly through 2007 before experiencing a notable increase in 2008, reaching 7,808 million USD. This was followed by a peak in 2009 at 12,901 million USD, after which there was a sharp decline to 861 million USD in 2010. Subsequently, the net income showed fluctuations between approximately 2,394 million USD and 13,049 million USD in the following years, with substantial peaks in 2014 (11,920 million USD), 2021 (13,049 million USD), and 2022 (14,519 million USD). In 2023, net income fell drastically to 365 million USD before rebounding strongly to 17,117 million USD in 2024. This pattern suggests periods of considerable earnings variability and potential impacts from external or internal factors influencing profitability.
Total Assets
Total assets exhibited an overall upward trend with some fluctuations. Starting at 44,846 million USD in 2005, asset levels were relatively stable through 2008, before a significant jump occurred in 2009 reaching 112,090 million USD. Following this peak, total assets decreased gradually until about 2014 and fluctuated thereafter, ranging between approximately 82,637 million USD and 109,160 million USD. The most recent years show a recovery and increase culminating at 117,106 million USD in 2024. This indicates a long-term growth in the asset base despite intermittent contractions, possibly due to strategic asset management or investment cycles.
Return on Assets (ROA)
ROA showed considerable variability, reflecting changing efficiency in asset utilization. It began at 10.33% in 2005, slightly decreased in the following years, and peaked sharply at 16.54% in 2008. The ratio then plummeted to a low of 0.81% in 2010, corresponding with the net income decline seen that year. After 2010, ROA gradually improved, with minor fluctuations, reaching double digits again in 2018 (11.66%) and maintaining elevated levels above 12% in the early 2020s, including a peak of 13.3% in 2022. A significant trough was recorded in 2023 at 0.34%, in line with the dramatic decline in net income, before a sharp recovery to 14.62% in 2024. The ratio’s variations mirror the net income trends and reflect changes in profitability relative to asset size.
Overall Insights
The data reveal a company experiencing significant earnings volatility, which correlates with fluctuating returns on assets. Despite this volatility, total assets have generally increased over the long term, indicating growth in the company’s scale and resource base. Sharper fluctuations in net income and ROA suggest sensitivity to market conditions, operational factors, or possibly significant one-time events affecting profitability. The recovery in the most recent year across all key metrics suggests a positive turnaround after a challenging period. Monitoring the consistency of earnings and asset efficiency would be advisable going forward.

Comparison to Competitors

Merck & Co. Inc., ROA, 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., ROA, 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)