Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Return on Equity (ROE) 
since 2005

Microsoft Excel

Calculation

Merck & Co. Inc., ROE, 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


The analysis of the financial data reveals several notable trends in profitability, equity, and return on equity (ROE) over the examined period.

Net Income Attributable to Merck & Co., Inc.
Net income exhibits considerable volatility throughout the years observed. There is a marked increase in net income in 2008 and 2009, peaking at 12,901 million USD in 2009. Following this peak, net income declines significantly in 2010 but recovers moderately in subsequent years. Another pronounced surge is observed in 2014 with net income reaching 11,920 million USD, though fluctuations continue afterward. The figure peaks again in 2022 at 14,519 million USD before sharply dropping to 365 million USD in 2023, then rising again in 2024 to 17,117 million USD. These fluctuations suggest variability in operational performance or extraordinary items influencing profitability across years.
Total Merck & Co., Inc. Stockholders’ Equity
Total stockholders’ equity remains relatively stable with a general upward trend in the initial years until 2009, when a substantial increase to 59,058 million USD is noted. After that, equity decreases gradually until 2015, reaching a low of 25,907 million USD in 2019. A recovery phase follows with equity rising to 45,991 million USD by 2022, before again decreasing and ending at 46,313 million USD in 2024. The variations in equity reflect significant changes in retained earnings, share issuances or buybacks, and possibly other comprehensive income impacts over time.
Return on Equity (ROE)
The ROE shows high variability, indicative of the changing profitability relative to shareholders' equity. The highest ROE is in 2008 at 41.63%, coinciding with a peak in net income, followed by a sharp drop to 1.58% in 2010, correlating with reduced net income levels. The ROE increases again significantly in 2014 to 24.5% and reaches a maximum of 37.99% in 2019 before declining in 2023 to 0.97%. The final years show a robust rebound, ending at 36.96% in 2024. These fluctuations confirm the sensitivity of the company’s profitability relative to its equity base and underlying earnings volatility.

Overall, the data highlights a cyclical pattern in net income and ROE, with periods of substantial profitability followed by sharp declines. Stockholders’ equity shows a general upward trend with some periods of contraction, potentially reflecting strategic financial management decisions, market conditions, or broader industry trends impacting the company's financial position.


Comparison to Competitors

Merck & Co. Inc., ROE, 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., ROE, 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)

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

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).