Adjusted Ratios (Summary)
Adjusted Total Asset Turnover
Adjusted Current Ratio
Adjusted Debt to Equity
Adjusted Debt to Capital
Adjusted Financial Leverage
Adjusted Net Profit Margin
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Merck & Co. Inc., adjusted ratios

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Activity
	Total Asset Turnover
	Reported
	Adjusted
	Liquidity
	Current Ratio
	Reported
	Adjusted
	Solvency
	Debt to Equity
	Reported
	Adjusted
	Debt to Capital
	Reported
	Adjusted
	Financial Leverage
	Reported
	Adjusted
	Profitability
	Net Profit Margin
	Reported
	Adjusted
	Return on Equity (ROE)
	Reported
	Adjusted
	Return on Assets (ROA)
	Reported
	Adjusted

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Merck & Co. Inc.’s adjusted total asset turnover improved from 2016 to 2017 and from 2017 to 2018.
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Merck & Co. Inc.’s adjusted current ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Merck & Co. Inc.’s adjusted debt-to-equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Merck & Co. Inc.’s adjusted debt-to-capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Merck & Co. Inc.’s adjusted financial leverage increased from 2016 to 2017 and from 2017 to 2018.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue.	Merck & Co. Inc.’s adjusted net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROE	A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity.	Merck & Co. Inc.’s adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROA	A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets.	Merck & Co. Inc.’s adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Merck & Co. Inc., Ratios: Reported vs. Adjusted

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Reported
	Selected Financial Data (US$ in millions)
	Sales
	Total assets
	Ratio
	Total asset turnover¹
	Adjusted
	Selected Financial Data (US$ in millions)
	Sales
	Adjusted total assets²
	Ratio
	Adjusted total asset turnover³

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

2018 Calculations

¹ Total asset turnover = Sales ÷ Total assets
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² Adjusted total assets. See Details »

³ Adjusted total asset turnover = Sales ÷ Adjusted total assets
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Merck & Co. Inc.’s adjusted total asset turnover improved from 2016 to 2017 and from 2017 to 2018.

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Reported
	Selected Financial Data (US$ in millions)
	Current assets
	Current liabilities
	Ratio
	Current ratio¹
	Adjusted
	Selected Financial Data (US$ in millions)
	Adjusted current assets²
	Adjusted current liabilities³
	Ratio
	Adjusted current ratio⁴

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

2018 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= hidden ÷ hidden = hidden

² Adjusted current assets. See Details »

³ Adjusted current liabilities. See Details »

⁴ Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Merck & Co. Inc.’s adjusted current ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Reported
	Selected Financial Data (US$ in millions)
	Total debt
	Total Merck & Co., Inc. stockholders’ equity
	Ratio
	Debt to equity¹
	Adjusted
	Selected Financial Data (US$ in millions)
	Adjusted total debt²
	Adjusted total Merck & Co., Inc. stockholders’ equity³
	Ratio
	Adjusted debt to equity⁴

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

2018 Calculations

¹ Debt to equity = Total debt ÷ Total Merck & Co., Inc. stockholders’ equity
= hidden ÷ hidden = hidden

² Adjusted total debt. See Details »

³ Adjusted total Merck & Co., Inc. stockholders’ equity. See Details »

⁴ Adjusted debt to equity = Adjusted total debt ÷ Adjusted total Merck & Co., Inc. stockholders’ equity
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Merck & Co. Inc.’s adjusted debt-to-equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Reported
	Selected Financial Data (US$ in millions)
	Total debt
	Total capital
	Ratio
	Debt to capital¹
	Adjusted
	Selected Financial Data (US$ in millions)
	Adjusted total debt²
	Adjusted total capital³
	Ratio
	Adjusted debt to capital⁴

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

2018 Calculations

¹ Debt to capital = Total debt ÷ Total capital
= hidden ÷ hidden = hidden

² Adjusted total debt. See Details »

³ Adjusted total capital. See Details »

⁴ Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Merck & Co. Inc.’s adjusted debt-to-capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Reported
	Selected Financial Data (US$ in millions)
	Total assets
	Total Merck & Co., Inc. stockholders’ equity
	Ratio
	Financial leverage¹
	Adjusted
	Selected Financial Data (US$ in millions)
	Adjusted total assets²
	Adjusted total Merck & Co., Inc. stockholders’ equity³
	Ratio
	Adjusted financial leverage⁴

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

2018 Calculations

¹ Financial leverage = Total assets ÷ Total Merck & Co., Inc. stockholders’ equity
= hidden ÷ hidden = hidden

² Adjusted total assets. See Details »

³ Adjusted total Merck & Co., Inc. stockholders’ equity. See Details »

⁴ Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Merck & Co., Inc. stockholders’ equity
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Merck & Co. Inc.’s adjusted financial leverage increased from 2016 to 2017 and from 2017 to 2018.

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Reported
	Selected Financial Data (US$ in millions)
	Net income attributable to Merck & Co., Inc.
	Sales
	Ratio
	Net profit margin¹
	Adjusted
	Selected Financial Data (US$ in millions)
	Adjusted net income attributable to Merck & Co., Inc.²
	Sales
	Ratio
	Adjusted net profit margin³

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

2018 Calculations

¹ Net profit margin = 100 × Net income attributable to Merck & Co., Inc. ÷ Sales
= 100 × hidden ÷ hidden = hidden

² Adjusted net income attributable to Merck & Co., Inc.. See Details »

³ Adjusted net profit margin = 100 × Adjusted net income attributable to Merck & Co., Inc. ÷ Sales
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue.	Merck & Co. Inc.’s adjusted net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Reported
	Selected Financial Data (US$ in millions)
	Net income attributable to Merck & Co., Inc.
	Total Merck & Co., Inc. stockholders’ equity
	Ratio
	ROE¹
	Adjusted
	Selected Financial Data (US$ in millions)
	Adjusted net income attributable to Merck & Co., Inc.²
	Adjusted total Merck & Co., Inc. stockholders’ equity³
	Ratio
	Adjusted ROE⁴

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

2018 Calculations

¹ ROE = 100 × Net income attributable to Merck & Co., Inc. ÷ Total Merck & Co., Inc. stockholders’ equity
= 100 × hidden ÷ hidden = hidden

² Adjusted net income attributable to Merck & Co., Inc.. See Details »

³ Adjusted total Merck & Co., Inc. stockholders’ equity. See Details »

⁴ Adjusted ROE = 100 × Adjusted net income attributable to Merck & Co., Inc. ÷ Adjusted total Merck & Co., Inc. stockholders’ equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity.	Merck & Co. Inc.’s adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Reported
	Selected Financial Data (US$ in millions)
	Net income attributable to Merck & Co., Inc.
	Total assets
	Ratio
	ROA¹
	Adjusted
	Selected Financial Data (US$ in millions)
	Adjusted net income attributable to Merck & Co., Inc.²
	Adjusted total assets³
	Ratio
	Adjusted ROA⁴

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-27).

2018 Calculations

¹ ROA = 100 × Net income attributable to Merck & Co., Inc. ÷ Total assets
= 100 × hidden ÷ hidden = hidden

² Adjusted net income attributable to Merck & Co., Inc.. See Details »

³ Adjusted total assets. See Details »

⁴ Adjusted ROA = 100 × Adjusted net income attributable to Merck & Co., Inc. ÷ Adjusted total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets.	Merck & Co. Inc.’s adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

	Merck & Co. Inc.	Other companies (not purchased previously)
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Long-term Trends
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Merck & Co. Inc. (MRK)

Adjusted Ratios

Adjusted Ratios (Summary)

Merck & Co. Inc., Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Current Ratio

Adjusted Debt to Equity

Adjusted Debt to Capital

Adjusted Financial Leverage

Adjusted Net Profit Margin

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)