Analysis of Geographic Areas
Merck & Co. Inc. operates in 7 regions: United States; Europe, Middle East and Africa; Latin America; Asia Pacific (other than China and Japan); Japan; China; and Other.
Area Asset Turnover
Merck & Co. Inc., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 2.43 | 2.19 | 2.05 | 2.11 | 1.91 |
| Europe, Middle East and Africa | 1.65 | 1.86 | 1.75 | 2.07 | 2.19 |
| Latin America | 26.64 | 26.01 | 13.90 | 11.48 | 11.09 |
| Asia Pacific (other than China and Japan) | 3.32 | 3.11 | 3.16 | 3.74 | 2.81 |
| Japan | 18.83 | 22.94 | 23.79 | 26.88 | 17.14 |
| China | 8.89 | 27.20 | 35.24 | 25.08 | 19.90 |
| Other | 56.43 | 54.45 | 526.00 | 513.60 | 305.25 |
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).
An examination of area asset turnover reveals significant variations across geographic regions and over the five-year period. Generally, asset turnover indicates how efficiently a company utilizes its assets to generate sales; higher values suggest greater efficiency. Notable differences exist between regions, with some demonstrating consistently high turnover while others exhibit substantial fluctuations.
- United States
- Asset turnover in the United States demonstrates a generally positive trend, increasing from 1.91 to 2.43 over the period. While there was a slight decrease from 2022 to 2023, the overall trajectory indicates improving asset utilization within this region.
- Europe, Middle East and Africa
- The Europe, Middle East and Africa region exhibits a declining trend in asset turnover. Starting at 2.19, the ratio decreased to 1.65 by the end of the period. This suggests a diminishing efficiency in asset utilization within this geographic area.
- Latin America
- Latin America consistently displays high asset turnover, with a substantial increase over the period. Beginning at 11.09, the ratio rose dramatically to 26.64. This indicates a very efficient use of assets in generating sales within this region, although the magnitude of the ratio warrants further investigation to understand the underlying drivers.
- Asia Pacific (other than China and Japan)
- Asset turnover in the Asia Pacific region (excluding China and Japan) shows some volatility. The ratio increased from 2.81 to 3.74, then decreased to 3.11 before recovering slightly to 3.32. This suggests fluctuating asset utilization efficiency, potentially influenced by regional economic conditions or specific business activities.
- Japan
- Japan presents a high, but decreasing, asset turnover ratio. Starting at 17.14, the ratio declined to 18.83. While remaining relatively high, the downward trend suggests a potential decrease in asset utilization efficiency.
- China
- China experienced a significant increase in asset turnover from 19.90 to 35.24, followed by a substantial decrease to 8.89. This volatility suggests considerable changes in sales relative to assets, potentially linked to market dynamics or strategic shifts within the region.
- Other
- The “Other” category demonstrates extremely high and volatile asset turnover. The ratio began at 305.25, peaked at 513.60, and then decreased dramatically to 56.43. This extreme fluctuation suggests that this category encompasses a diverse set of assets and operations, or that the reported figures may be influenced by unusual or non-recurring items. The significant decline in later years requires further scrutiny.
In summary, asset turnover varies considerably by geographic area. Latin America, Japan, and China initially demonstrate high turnover, though China experiences a significant decline in the final year. The Europe, Middle East and Africa region shows a consistent downward trend, while the United States exhibits a generally positive trend. The “Other” category’s figures are highly volatile and require further investigation.
AI Ask an analyst for more
Area Asset Turnover: United States
Merck & Co. Inc.; United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 36,510) | 32,277) | 28,480) | 27,206) | 22,425) |
| Property, plant and equipment, net | 15,021) | 14,724) | 13,915) | 12,891) | 11,759) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 2.43 | 2.19 | 2.05 | 2.11 | 1.91 |
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).
1 2025 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 36,510 ÷ 15,021 = 2.43
The financial performance within the United States demonstrates a consistent upward trend in sales alongside a moderate increase in property, plant, and equipment. This combination has resulted in a generally improving area asset turnover ratio over the five-year period.
- Sales
- Sales in the United States increased steadily from US$22,425 million in 2021 to US$36,510 million in 2025. The largest year-over-year increase occurred between 2021 and 2022, with a growth of approximately 21.3%. Subsequent annual increases, while still substantial, were more moderate, ranging from approximately 4.7% to 11.8%.
- Property, Plant and Equipment, Net
- Net property, plant, and equipment exhibited a consistent, though slower, growth pattern. The value rose from US$11,759 million in 2021 to US$15,021 million in 2025. The rate of increase decelerated over time, with the smallest increase observed between 2024 and 2025.
- Area Asset Turnover
- The area asset turnover ratio, which measures the efficiency with which assets are used to generate sales, generally improved from 1.91 in 2021 to 2.43 in 2025. A slight dip was observed between 2022 and 2023, falling from 2.11 to 2.05, but the ratio resumed its upward trajectory in subsequent years. This indicates increasing efficiency in asset utilization within the United States.
The consistent growth in sales, coupled with the relatively controlled increase in property, plant, and equipment, suggests effective management of assets to drive revenue generation within the specified geographic area. The increasing asset turnover ratio is a positive indicator of operational efficiency.
AI Ask an analyst for more
Area Asset Turnover: Europe, Middle East and Africa
Merck & Co. Inc.; Europe, Middle East and Africa; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 14,580) | 14,041) | 13,254) | 14,493) | 13,341) |
| Property, plant and equipment, net | 8,856) | 7,548) | 7,562) | 6,993) | 6,081) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.65 | 1.86 | 1.75 | 2.07 | 2.19 |
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).
1 2025 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 14,580 ÷ 8,856 = 1.65
The financial performance of the specified geographic area reveals fluctuating trends in sales and asset utilization between 2021 and 2025. Sales exhibited an initial increase followed by a decline and subsequent recovery, while the value of property, plant, and equipment consistently rose over the period. This impacted the area asset turnover ratio, which demonstrated a decreasing trend overall.
- Sales Trend
- Sales in the region increased from US$13,341 million in 2021 to US$14,493 million in 2022, representing a growth of approximately 8.6%. A subsequent decrease was observed in 2023, with sales falling to US$13,254 million. Sales then partially recovered in 2024, reaching US$14,041 million, and continued to rise in 2025 to US$14,580 million. This indicates a period of volatility followed by a return to growth, though not exceeding the 2022 peak.
- Property, Plant & Equipment Trend
- The net value of property, plant, and equipment consistently increased throughout the analyzed period. Starting at US$6,081 million in 2021, it rose to US$6,993 million in 2022, US$7,562 million in 2023, and US$7,548 million in 2024. The most significant increase occurred between 2024 and 2025, with the value reaching US$8,856 million. This suggests ongoing investment in fixed assets within the region.
- Area Asset Turnover
- The area asset turnover ratio, which measures the efficiency of asset utilization in generating sales, generally declined over the five-year period. The ratio began at 2.19 in 2021, decreased to 2.07 in 2022, and further to 1.75 in 2023. A slight recovery was noted in 2024, with the ratio increasing to 1.86, but it continued to fall in 2025, reaching 1.65. This indicates a decreasing ability to generate sales revenue from the existing asset base, potentially due to the faster growth in assets compared to sales.
The combination of fluctuating sales and consistently increasing property, plant, and equipment values resulted in a downward trend in area asset turnover. While sales experienced a recovery towards the end of the period, it was not sufficient to offset the impact of asset growth on the turnover ratio.
AI Ask an analyst for more
Area Asset Turnover: Latin America
Merck & Co. Inc.; Latin America; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 3,410) | 3,459) | 3,086) | 2,582) | 2,206) |
| Property, plant and equipment, net | 128) | 133) | 222) | 225) | 199) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 26.64 | 26.01 | 13.90 | 11.48 | 11.09 |
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).
1 2025 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 3,410 ÷ 128 = 26.64
Analysis of the Latin America geographic area reveals a significant increase in asset turnover over the observed period. Sales within the region demonstrate consistent growth, while the net value of property, plant, and equipment exhibits a more complex pattern. These factors combine to drive substantial changes in the area asset turnover ratio.
- Sales
- Sales in Latin America increased from US$2,206 million in 2021 to US$2,582 million in 2022, representing a growth of approximately 17%. This upward trend continued into 2023, reaching US$3,086 million, and further to US$3,459 million in 2024. A slight decrease in sales is observed in 2025, with a value of US$3,410 million, though remaining above all prior years.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment initially increased from US$199 million in 2021 to US$225 million in 2022. It remained relatively stable in 2023 at US$222 million, before experiencing a substantial decline to US$133 million in 2024. This downward trend continued into 2025, with a final value of US$128 million. The decrease in fixed assets suggests potential asset disposals or depreciation exceeding new investments.
- Area Asset Turnover
- The area asset turnover ratio increased steadily from 11.09 in 2021 to 11.48 in 2022. A more pronounced increase is observed in 2023, reaching 13.90. The ratio experiences a dramatic surge in 2024, climbing to 26.01, and continues to rise, albeit at a slower pace, to 26.64 in 2025. This substantial increase indicates a significantly improved efficiency in utilizing assets to generate sales within the Latin America region. The combination of growing sales and decreasing property, plant, and equipment values is the primary driver of this trend.
The consistently high asset turnover in the latter years of the period suggests effective asset management and strong sales performance relative to the level of fixed assets employed. Further investigation into the reasons behind the decline in property, plant, and equipment may provide additional insights into the operational strategies within the Latin America area.
AI Ask an analyst for more
Area Asset Turnover: Asia Pacific (other than China and Japan)
Merck & Co. Inc.; Asia Pacific (other than China and Japan); area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 2,983) | 3,058) | 3,225) | 3,614) | 2,407) |
| Property, plant and equipment, net | 898) | 982) | 1,022) | 966) | 857) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.32 | 3.11 | 3.16 | 3.74 | 2.81 |
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).
1 2025 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 2,983 ÷ 898 = 3.32
The financial performance of this geographic area demonstrates fluctuating sales alongside increasing, then decreasing, fixed assets. The area asset turnover ratio exhibits a generally stable pattern with some variation over the observed period.
- Sales
- Sales within this region increased significantly from 2021 to 2022, rising from US$2,407 million to US$3,614 million. However, sales then experienced a decline in both 2023 and 2024, reaching US$3,225 million and US$3,058 million respectively. This downward trend moderated in 2025, with sales stabilizing at US$2,983 million. The overall trend suggests initial strong growth followed by a period of contraction.
- Property, Plant and Equipment, Net
- Net property, plant and equipment consistently increased from 2021 to 2023, moving from US$857 million to US$1,022 million. This indicates a period of investment in fixed assets. In 2024, a slight decrease was observed, falling to US$982 million, and this trend continued into 2025 with a further reduction to US$898 million. This suggests a potential slowdown in capital expenditure or asset disposals.
- Area Asset Turnover
- The area asset turnover ratio increased from 2.81 in 2021 to a peak of 3.74 in 2022, coinciding with the substantial sales growth. The ratio then decreased to 3.16 in 2023 and remained relatively stable at 3.11 in 2024. A slight increase to 3.32 was noted in 2025. This ratio indicates how efficiently the area’s assets are being used to generate sales. While the ratio experienced fluctuations, it remained above 3.0 throughout the period, suggesting reasonably efficient asset utilization. The initial increase in 2022, followed by a stabilization and slight recovery, suggests a correlation with sales performance, though the impact of asset changes also plays a role.
The interplay between sales and asset values suggests a dynamic environment. The initial sales surge was accompanied by asset investment, but subsequent sales declines led to a stabilization and eventual decrease in asset values. The asset turnover ratio reflects these changes, demonstrating a generally efficient use of assets despite the sales volatility.
AI Ask an analyst for more
Area Asset Turnover: Japan
Merck & Co. Inc.; Japan; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 2,711) | 3,280) | 3,164) | 3,629) | 2,726) |
| Property, plant and equipment, net | 144) | 143) | 133) | 135) | 159) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 18.83 | 22.94 | 23.79 | 26.88 | 17.14 |
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).
1 2025 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 2,711 ÷ 144 = 18.83
Analysis of the geographic area of Japan reveals fluctuating performance between 2021 and 2025. Sales exhibited initial growth followed by a decline, while net property, plant, and equipment remained relatively stable. Consequently, the area asset turnover ratio demonstrated a corresponding pattern of increase and subsequent decrease.
- Sales Trend
- Sales in Japan increased from US$2,726 million in 2021 to US$3,629 million in 2022, representing a substantial gain. However, sales then decreased to US$3,164 million in 2023 and continued to decline to US$2,711 million in 2025. This indicates a weakening sales performance in the latter part of the analyzed period.
- Property, Plant, and Equipment Trend
- Net property, plant, and equipment remained relatively consistent throughout the period, fluctuating between US$133 million and US$159 million. A slight increase is observed from 2022 to 2024, followed by a minor increase in 2025. These changes are not substantial and do not appear to significantly influence the asset turnover ratio.
- Area Asset Turnover Trend
- The area asset turnover ratio increased significantly from 17.14 in 2021 to 26.88 in 2022, coinciding with the increase in sales. The ratio then decreased to 23.79 in 2023, 22.94 in 2024, and further to 18.83 in 2025. This decline mirrors the decreasing sales trend, suggesting that the efficiency of asset utilization in generating sales is diminishing as sales volumes decrease. The ratio in 2025 is approaching the level observed in 2021.
The observed trends suggest a strong correlation between sales performance and asset turnover in the Japanese market. While initial gains were achieved, the subsequent decline in sales has negatively impacted the efficiency with which assets are used to generate revenue.
AI Ask an analyst for more
Area Asset Turnover: China
Merck & Co. Inc.; China; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 1,939) | 5,494) | 6,802) | 5,191) | 4,378) |
| Property, plant and equipment, net | 218) | 202) | 193) | 207) | 220) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 8.89 | 27.20 | 35.24 | 25.08 | 19.90 |
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).
1 2025 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 1,939 ÷ 218 = 8.89
The financial performance indicators for this geographic area reveal a dynamic pattern over the five-year period. Sales exhibited substantial growth initially, followed by a significant decline. Simultaneously, the value of property, plant, and equipment remained relatively stable, with a slight increase towards the end of the period. Consequently, the area asset turnover ratio demonstrates considerable fluctuation.
- Sales Trend
- Sales increased from US$4,378 million in 2021 to US$5,191 million in 2022, representing a growth of approximately 18.7%. Further growth was observed in 2023, with sales reaching US$6,802 million. However, sales decreased significantly to US$5,494 million in 2024 and then experienced a substantial decline to US$1,939 million in 2025.
- Property, Plant & Equipment Trend
- The net value of property, plant, and equipment showed a modest decrease from US$220 million in 2021 to US$207 million in 2022, and further to US$193 million in 2023. A slight recovery was noted in 2024, increasing to US$202 million, followed by a further increase to US$218 million in 2025. These changes were relatively small compared to the fluctuations in sales.
- Area Asset Turnover
- The area asset turnover ratio increased from 19.90 in 2021 to 25.08 in 2022, and peaked at 35.24 in 2023, indicating increasing efficiency in asset utilization relative to sales. This trend reversed in 2024, with the ratio decreasing to 27.20. The most significant change occurred in 2025, with the ratio falling sharply to 8.89, coinciding with the substantial decline in sales. This suggests a considerable decrease in the efficiency of asset utilization.
The substantial decrease in sales in 2025, coupled with a relatively stable asset base, resulted in a marked reduction in the area asset turnover ratio. This indicates that the area’s assets are generating significantly less revenue than in previous years. The initial increases in the asset turnover ratio from 2021 to 2023 suggest improved operational efficiency, but this positive trend was not sustained.
AI Ask an analyst for more
Area Asset Turnover: Other
Merck & Co. Inc.; Other; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 2,878) | 2,559) | 2,104) | 2,568) | 1,221) |
| Property, plant and equipment, net | 51) | 47) | 4) | 5) | 4) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 56.43 | 54.45 | 526.00 | 513.60 | 305.25 |
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).
1 2025 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 2,878 ÷ 51 = 56.43
The financial performance of this geographic area demonstrates significant fluctuations in asset turnover over the observed period. Sales exhibit an initial increase followed by a decline and subsequent recovery, while net property, plant, and equipment show a more consistent, albeit volatile, upward trend. These movements have a substantial impact on the calculated area asset turnover ratio.
- Sales
- Sales increased considerably from US$1,221 million in 2021 to US$2,568 million in 2022. A decrease to US$2,104 million was noted in 2023, followed by a rise to US$2,559 million in 2024 and further growth to US$2,878 million in 2025. This indicates a period of strong growth, a temporary setback, and a subsequent return to growth.
- Property, Plant and Equipment, Net
- Net property, plant, and equipment remained relatively stable at US$4 million in 2021, 2022, and 2023. A substantial increase to US$47 million occurred in 2024, followed by a further increase to US$51 million in 2025. This suggests a significant investment in fixed assets during the latter part of the period.
- Area Asset Turnover
- The area asset turnover ratio peaked in 2022 at 513.60, following a value of 305.25 in 2021. It remained high in 2023 at 526.00, but experienced a dramatic decline to 54.45 in 2024. The ratio continued to increase slightly in 2025, reaching 56.43. This fluctuation is directly related to the combined effect of sales and net property, plant, and equipment. The substantial increase in fixed assets in 2024, coupled with relatively stable sales, resulted in the significant decrease in the asset turnover ratio. The modest increase in 2025 reflects the continued growth in sales alongside a further, but smaller, increase in fixed assets.
The observed trends suggest that while the area initially demonstrated efficient asset utilization, the substantial investment in property, plant, and equipment in 2024 and 2025 lowered the asset turnover ratio. Future performance will depend on the area’s ability to generate increased sales relative to its asset base.
AI Ask an analyst for more
Sales
Merck & Co. Inc., sales by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 36,510) | 32,277) | 28,480) | 27,206) | 22,425) |
| Europe, Middle East and Africa | 14,580) | 14,041) | 13,254) | 14,493) | 13,341) |
| Latin America | 3,410) | 3,459) | 3,086) | 2,582) | 2,206) |
| Asia Pacific (other than China and Japan) | 2,983) | 3,058) | 3,225) | 3,614) | 2,407) |
| Japan | 2,711) | 3,280) | 3,164) | 3,629) | 2,726) |
| China | 1,939) | 5,494) | 6,802) | 5,191) | 4,378) |
| Other | 2,878) | 2,559) | 2,104) | 2,568) | 1,221) |
| Total | 65,011) | 64,168) | 60,115) | 59,283) | 48,704) |
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).
Overall, sales demonstrate a consistent upward trajectory from 2021 to 2025, increasing from US$48.704 billion to US$65.011 billion. However, the rate of growth varies significantly across different geographic regions, and recent performance indicates shifts in regional contributions to total sales.
- United States
- The United States represents the largest single market for sales, and exhibits strong and consistent growth throughout the period. Sales increased from US$22.425 billion in 2021 to US$36.510 billion in 2025, representing a substantial contribution to the overall growth. The rate of increase accelerated between 2021-2024, then slowed slightly between 2024-2025.
- Europe, Middle East and Africa
- Sales in Europe, the Middle East, and Africa experienced initial growth from US$13.341 billion in 2021 to US$14.493 billion in 2022. However, sales declined to US$13.254 billion in 2023 before recovering to US$14.580 billion in 2025. While remaining a significant market, this region’s growth is less consistent than that of the United States.
- Latin America
- Latin America demonstrates steady growth in sales, increasing from US$2.206 billion in 2021 to US$3.410 billion in 2025. The rate of growth slowed between 2023 and 2025, but the region continues to contribute positively to overall sales.
- Asia Pacific (excluding China and Japan)
- Sales in the Asia Pacific region (excluding China and Japan) initially increased significantly from US$2.407 billion in 2021 to US$3.614 billion in 2022. However, sales then decreased to US$2.983 billion in 2025, indicating a potential weakening in this market. This represents a notable shift from the initial positive trend.
- Japan
- Japan experienced growth from US$2.726 billion in 2021 to US$3.629 billion in 2022, followed by a decline to US$2.711 billion in 2025. This suggests a volatile performance in this market, with a return to levels similar to those observed in 2021.
- China
- China exhibited substantial growth from US$4.378 billion in 2021 to US$6.802 billion in 2023. However, sales decreased significantly to US$1.939 billion in 2025. This represents a dramatic reversal in trend and a substantial loss of sales within this key market. This decline warrants further investigation.
- Other
- The ‘Other’ category shows consistent growth, increasing from US$1.221 billion in 2021 to US$2.878 billion in 2025. While representing a smaller portion of total sales, this region demonstrates a stable upward trend.
In summary, while overall sales are increasing, the geographic distribution of sales is shifting. The United States is driving the majority of growth, while significant declines are observed in China and, to a lesser extent, the Asia Pacific region (excluding China and Japan). The performance in Europe, the Middle East, and Africa, and Japan is more variable. These regional trends suggest a need for focused strategies to address the challenges and opportunities in each market.
AI Ask an analyst for more
Property, plant and equipment, net
Merck & Co. Inc., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 15,021) | 14,724) | 13,915) | 12,891) | 11,759) |
| Europe, Middle East and Africa | 8,856) | 7,548) | 7,562) | 6,993) | 6,081) |
| Latin America | 128) | 133) | 222) | 225) | 199) |
| Asia Pacific (other than China and Japan) | 898) | 982) | 1,022) | 966) | 857) |
| Japan | 144) | 143) | 133) | 135) | 159) |
| China | 218) | 202) | 193) | 207) | 220) |
| Other | 51) | 47) | 4) | 5) | 4) |
| Total | 25,316) | 23,779) | 23,051) | 21,422) | 19,279) |
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).
The net value of property, plant, and equipment exhibited consistent growth overall between 2021 and 2025. However, significant variations exist when examining individual geographic regions. The United States consistently represents the largest portion of these assets and demonstrates a steady, albeit moderating, increase throughout the period.
- United States
- The United States experienced a continuous rise in net property, plant, and equipment, increasing from US$11,759 million in 2021 to US$15,021 million in 2025. The rate of increase slowed from US$1,132 million between 2021 and 2022 to US$397 million between 2024 and 2025, suggesting a potential stabilization of investment in this region.
- Europe, Middle East and Africa
- This region also showed growth, increasing from US$6,081 million in 2021 to US$8,856 million in 2025. A notable increase of US$863 million occurred between 2022 and 2023, followed by a slight decrease in 2024 before resuming growth in 2025. This suggests potential fluctuations in investment activity within this geographic area.
- Latin America
- Latin America presents a contrasting trend. After modest growth from US$199 million in 2021 to US$225 million in 2022, the region experienced a decline, falling to US$128 million in 2025. This indicates a potential reduction in capital expenditure or asset disposals within this region.
- Asia Pacific (excluding China and Japan)
- The Asia Pacific region (excluding China and Japan) showed initial growth, increasing from US$857 million in 2021 to US$1,022 million in 2023, but then experienced a decrease to US$898 million in 2025. This suggests a possible shift in investment strategy or project completion within this area.
- Japan and China
- Both Japan and China exhibited relatively stable, but lower, levels of net property, plant, and equipment compared to other regions. Japan remained relatively consistent, fluctuating between US$133 million and US$159 million. China showed a similar pattern, ranging from US$193 million to US$220 million, with a slight increase observed in 2025.
- Other
- The “Other” category experienced a substantial increase from US$4 million in 2021 to US$51 million in 2025. This significant growth, particularly between 2024 and 2025, warrants further investigation to understand the underlying drivers of this change.
In summary, while total net property, plant, and equipment increased consistently, the growth was unevenly distributed across geographic regions. The United States and Europe, Middle East and Africa contributed the most to the overall increase, while Latin America and, to a lesser extent, Asia Pacific (excluding China and Japan) experienced declines. The “Other” category showed a disproportionately large increase, requiring further scrutiny.
AI Ask an analyst for more