Microsoft Excel LibreOffice Calc

Merck & Co. Inc. (NYSE:MRK)


Analysis of Solvency Ratios

Beginner level


Solvency Ratios (Summary)

Merck & Co. Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt Ratios
Debt to equity 1.02 0.94 0.71 0.62 0.59
Debt to equity (including operating lease liability) 1.06 0.94 0.71 0.62 0.59
Debt to capital 0.50 0.48 0.42 0.38 0.37
Debt to capital (including operating lease liability) 0.51 0.48 0.42 0.38 0.37
Debt to assets 0.31 0.30 0.28 0.26 0.26
Debt to assets (including operating lease liability) 0.32 0.30 0.28 0.26 0.26
Financial leverage 3.26 3.09 2.56 2.38 2.28
Coverage Ratios
Interest coverage 13.84 12.27 9.65 7.72 9.04
Fixed charge coverage 10.31 8.95 7.03 5.73 6.54

Based on: 10-K (filing date: 2020-02-26), 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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Merck & Co. Inc.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Merck & Co. Inc.’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Merck & Co. Inc.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Merck & Co. Inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Merck & Co. Inc.’s debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Merck & Co. Inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Merck & Co. Inc.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Merck & Co. Inc.’s interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Merck & Co. Inc.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Equity

Merck & Co. Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Loans payable and current portion of long-term debt 3,610  5,308  3,057  568  2,585 
Long-term debt, excluding current portion 22,736  19,806  21,353  24,274  23,929 
Total debt 26,346  25,114  24,410  24,842  26,514 
 
Total Merck & Co., Inc. stockholders’ equity 25,907  26,701  34,336  40,088  44,676 
Solvency Ratio
Debt to equity1 1.02 0.94 0.71 0.62 0.59
Benchmarks
Debt to Equity, Competitors2
Abbott Laboratories 0.58 0.64 0.90 1.07 0.42
AbbVie Inc. 7.33 7.95 8.03
Allergan PLC 0.39 0.37 0.41 0.43 0.56
Amgen Inc. 3.09 2.71 1.40 1.16 1.12
Biogen Inc. 0.45 0.46 0.47 0.54 0.70
Bristol-Myers Squibb Co. 0.91 0.52 0.68 0.41 0.47
Eli Lilly & Co. 5.88 1.30 1.18 0.74 0.55
Gilead Sciences Inc. 1.09 1.28 1.64 1.39 1.20
Johnson & Johnson 0.47 0.51 0.57 0.39 0.28
Pfizer Inc. 0.83 0.66 0.61 0.71 0.60
Regeneron Pharmaceuticals Inc. 0.06 0.08 0.11 0.11 0.10
Vertex Pharmaceuticals Inc. 0.09 0.13 0.29 0.71 0.86
Zoetis Inc. 2.38 2.95 2.80 3.00 4.56
Debt to Equity, Sector
Pharmaceuticals & Biotechnology 0.98 0.85 0.82 0.75 0.67
Debt to Equity, Industry
Health Care 0.86 0.79 0.80 0.74 0.70

Based on: 10-K (filing date: 2020-02-26), 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).

1 2019 Calculation
Debt to equity = Total debt ÷ Total Merck & Co., Inc. stockholders’ equity
= 26,346 ÷ 25,907 = 1.02

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Merck & Co. Inc.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Equity (including Operating Lease Liability)

Merck & Co. Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Loans payable and current portion of long-term debt 3,610  5,308  3,057  568  2,585 
Long-term debt, excluding current portion 22,736  19,806  21,353  24,274  23,929 
Total debt 26,346  25,114  24,410  24,842  26,514 
Current operating lease liability (included in Accrued and other current liabilities) 236  —  —  —  — 
Noncurrent operating lease liability (included in Other noncurrent liabilities) 768  —  —  —  — 
Total debt (including operating lease liability) 27,350  25,114  24,410  24,842  26,514 
 
Total Merck & Co., Inc. stockholders’ equity 25,907  26,701  34,336  40,088  44,676 
Solvency Ratio
Debt to equity (including operating lease liability)1 1.06 0.94 0.71 0.62 0.59
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.61 0.64 0.90 1.07 0.42
AbbVie Inc. 7.33 7.95 8.03
Allergan PLC 0.40 0.37 0.41 0.43 0.56
Amgen Inc. 3.15 2.71 1.40 1.16 1.12
Biogen Inc. 0.48 0.46 0.47 0.54 0.70
Bristol-Myers Squibb Co. 0.92 0.52 0.68 0.41 0.47
Eli Lilly & Co. 6.11 1.30 1.18 0.74 0.55
Gilead Sciences Inc. 1.12 1.28 1.64 1.39 1.20
Johnson & Johnson 0.48 0.51 0.57 0.39 0.28
Pfizer Inc. 0.85 0.66 0.61 0.71 0.60
Regeneron Pharmaceuticals Inc. 0.07 0.08 0.11 0.11 0.10
Vertex Pharmaceuticals Inc. 0.11 0.13 0.29 0.71 0.86
Zoetis Inc. 2.45 2.95 2.80 3.00 4.56
Debt to Equity (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 1.01 0.85 0.82 0.75 0.67
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.89 0.79 0.80 0.74 0.70

Based on: 10-K (filing date: 2020-02-26), 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).

1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Merck & Co., Inc. stockholders’ equity
= 27,350 ÷ 25,907 = 1.06

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Merck & Co. Inc.’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Capital

Merck & Co. Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Loans payable and current portion of long-term debt 3,610  5,308  3,057  568  2,585 
Long-term debt, excluding current portion 22,736  19,806  21,353  24,274  23,929 
Total debt 26,346  25,114  24,410  24,842  26,514 
Total Merck & Co., Inc. stockholders’ equity 25,907  26,701  34,336  40,088  44,676 
Total capital 52,253  51,815  58,746  64,930  71,190 
Solvency Ratio
Debt to capital1 0.50 0.48 0.42 0.38 0.37
Benchmarks
Debt to Capital, Competitors2
Abbott Laboratories 0.37 0.39 0.47 0.52 0.30
AbbVie Inc. 1.14 1.27 0.88 0.89 0.89
Allergan PLC 0.28 0.27 0.29 0.30 0.36
Amgen Inc. 0.76 0.73 0.58 0.54 0.53
Biogen Inc. 0.31 0.31 0.32 0.35 0.41
Bristol-Myers Squibb Co. 0.48 0.34 0.40 0.29 0.32
Eli Lilly & Co. 0.85 0.57 0.54 0.42 0.35
Gilead Sciences Inc. 0.52 0.56 0.62 0.58 0.54
Johnson & Johnson 0.32 0.34 0.37 0.28 0.22
Pfizer Inc. 0.45 0.40 0.38 0.41 0.38
Regeneron Pharmaceuticals Inc. 0.06 0.07 0.10 0.10 0.09
Vertex Pharmaceuticals Inc. 0.09 0.12 0.22 0.42 0.46
Zoetis Inc. 0.70 0.75 0.74 0.75 0.82
Debt to Capital, Sector
Pharmaceuticals & Biotechnology 0.50 0.46 0.45 0.43 0.40
Debt to Capital, Industry
Health Care 0.46 0.44 0.44 0.43 0.41

Based on: 10-K (filing date: 2020-02-26), 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).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 26,346 ÷ 52,253 = 0.50

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Merck & Co. Inc.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Capital (including Operating Lease Liability)

Merck & Co. Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Loans payable and current portion of long-term debt 3,610  5,308  3,057  568  2,585 
Long-term debt, excluding current portion 22,736  19,806  21,353  24,274  23,929 
Total debt 26,346  25,114  24,410  24,842  26,514 
Current operating lease liability (included in Accrued and other current liabilities) 236  —  —  —  — 
Noncurrent operating lease liability (included in Other noncurrent liabilities) 768  —  —  —  — 
Total debt (including operating lease liability) 27,350  25,114  24,410  24,842  26,514 
Total Merck & Co., Inc. stockholders’ equity 25,907  26,701  34,336  40,088  44,676 
Total capital (including operating lease liability) 53,257  51,815  58,746  64,930  71,190 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.51 0.48 0.42 0.38 0.37
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.38 0.39 0.47 0.52 0.30
AbbVie Inc. 1.14 1.27 0.88 0.89 0.89
Allergan PLC 0.29 0.27 0.29 0.30 0.36
Amgen Inc. 0.76 0.73 0.58 0.54 0.53
Biogen Inc. 0.33 0.31 0.32 0.35 0.41
Bristol-Myers Squibb Co. 0.48 0.34 0.40 0.29 0.32
Eli Lilly & Co. 0.86 0.57 0.54 0.42 0.35
Gilead Sciences Inc. 0.53 0.56 0.62 0.58 0.54
Johnson & Johnson 0.33 0.34 0.37 0.28 0.22
Pfizer Inc. 0.46 0.40 0.38 0.41 0.38
Regeneron Pharmaceuticals Inc. 0.06 0.07 0.10 0.10 0.09
Vertex Pharmaceuticals Inc. 0.10 0.12 0.22 0.42 0.46
Zoetis Inc. 0.71 0.75 0.74 0.75 0.82
Debt to Capital (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 0.50 0.46 0.45 0.43 0.40
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.47 0.44 0.44 0.43 0.41

Based on: 10-K (filing date: 2020-02-26), 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).

1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 27,350 ÷ 53,257 = 0.51

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Merck & Co. Inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Assets

Merck & Co. Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Loans payable and current portion of long-term debt 3,610  5,308  3,057  568  2,585 
Long-term debt, excluding current portion 22,736  19,806  21,353  24,274  23,929 
Total debt 26,346  25,114  24,410  24,842  26,514 
 
Total assets 84,397  82,637  87,872  95,377  101,779 
Solvency Ratio
Debt to assets1 0.31 0.30 0.28 0.26 0.26
Benchmarks
Debt to Assets, Competitors2
Abbott Laboratories 0.27 0.29 0.37 0.42 0.22
AbbVie Inc. 0.75 0.68 0.53 0.56 0.60
Allergan PLC 0.24 0.23 0.25 0.25 0.31
Amgen Inc. 0.50 0.51 0.44 0.45 0.44
Biogen Inc. 0.22 0.23 0.25 0.28 0.33
Bristol-Myers Squibb Co. 0.36 0.21 0.24 0.20 0.21
Eli Lilly & Co. 0.39 0.29 0.30 0.27 0.22
Gilead Sciences Inc. 0.40 0.43 0.48 0.46 0.43
Johnson & Johnson 0.18 0.20 0.22 0.19 0.15
Pfizer Inc. 0.31 0.26 0.25 0.25 0.23
Regeneron Pharmaceuticals Inc. 0.05 0.06 0.08 0.07 0.07
Vertex Pharmaceuticals Inc. 0.07 0.09 0.16 0.28 0.32
Zoetis Inc. 0.56 0.60 0.58 0.58 0.62
Debt to Assets, Sector
Pharmaceuticals & Biotechnology 0.34 0.31 0.31 0.31 0.29
Debt to Assets, Industry
Health Care 0.32 0.31 0.31 0.31 0.30

Based on: 10-K (filing date: 2020-02-26), 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).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 26,346 ÷ 84,397 = 0.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Merck & Co. Inc.’s debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Assets (including Operating Lease Liability)

Merck & Co. Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Loans payable and current portion of long-term debt 3,610  5,308  3,057  568  2,585 
Long-term debt, excluding current portion 22,736  19,806  21,353  24,274  23,929 
Total debt 26,346  25,114  24,410  24,842  26,514 
Current operating lease liability (included in Accrued and other current liabilities) 236  —  —  —  — 
Noncurrent operating lease liability (included in Other noncurrent liabilities) 768  —  —  —  — 
Total debt (including operating lease liability) 27,350  25,114  24,410  24,842  26,514 
 
Total assets 84,397  82,637  87,872  95,377  101,779 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.32 0.30 0.28 0.26 0.26
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.28 0.29 0.37 0.42 0.22
AbbVie Inc. 0.75 0.68 0.53 0.56 0.60
Allergan PLC 0.25 0.23 0.25 0.25 0.31
Amgen Inc. 0.51 0.51 0.44 0.45 0.44
Biogen Inc. 0.24 0.23 0.25 0.28 0.33
Bristol-Myers Squibb Co. 0.37 0.21 0.24 0.20 0.21
Eli Lilly & Co. 0.41 0.29 0.30 0.27 0.22
Gilead Sciences Inc. 0.41 0.43 0.48 0.46 0.43
Johnson & Johnson 0.18 0.20 0.22 0.19 0.15
Pfizer Inc. 0.32 0.26 0.25 0.25 0.23
Regeneron Pharmaceuticals Inc. 0.05 0.06 0.08 0.07 0.07
Vertex Pharmaceuticals Inc. 0.08 0.09 0.16 0.28 0.32
Zoetis Inc. 0.58 0.60 0.58 0.58 0.62
Debt to Assets (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 0.35 0.31 0.31 0.31 0.29
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.33 0.31 0.31 0.31 0.30

Based on: 10-K (filing date: 2020-02-26), 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).

1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 27,350 ÷ 84,397 = 0.32

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Merck & Co. Inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.

Financial Leverage

Merck & Co. Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Total assets 84,397  82,637  87,872  95,377  101,779 
Total Merck & Co., Inc. stockholders’ equity 25,907  26,701  34,336  40,088  44,676 
Solvency Ratio
Financial leverage1 3.26 3.09 2.56 2.38 2.28
Benchmarks
Financial Leverage, Competitors2
Abbott Laboratories 2.18 2.20 2.47 2.56 1.94
AbbVie Inc. 13.89 14.26 13.45
Allergan PLC 1.63 1.56 1.60 1.69 1.77
Amgen Inc. 6.17 5.31 3.17 2.60 2.55
Biogen Inc. 2.04 1.94 1.88 1.88 2.08
Bristol-Myers Squibb Co. 2.52 2.49 2.86 2.08 2.23
Eli Lilly & Co. 15.07 4.47 3.88 2.77 2.44
Gilead Sciences Inc. 2.74 2.98 3.44 3.02 2.80
Johnson & Johnson 2.65 2.56 2.61 2.01 1.88
Pfizer Inc. 2.65 2.51 2.41 2.88 2.59
Regeneron Pharmaceuticals Inc. 1.34 1.34 1.43 1.57 1.53
Vertex Pharmaceuticals Inc. 1.37 1.41 1.75 2.50 2.66
Zoetis Inc. 4.26 4.93 4.85 5.14 7.41
Financial Leverage, Sector
Pharmaceuticals & Biotechnology 2.90 2.74 2.60 2.44 2.30
Financial Leverage, Industry
Health Care 2.69 2.59 2.54 2.43 2.33

Based on: 10-K (filing date: 2020-02-26), 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).

1 2019 Calculation
Financial leverage = Total assets ÷ Total Merck & Co., Inc. stockholders’ equity
= 84,397 ÷ 25,907 = 3.26

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Merck & Co. Inc.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Interest Coverage

Merck & Co. Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Merck & Co., Inc. 9,843  6,220  2,394  3,920  4,442 
Add: Net income attributable to noncontrolling interest (66) (27) 24  21  17 
Add: Income tax expense 1,687  2,508  4,103  718  942 
Add: Interest expense 893  772  754  693  672 
Earnings before interest and tax (EBIT) 12,357  9,473  7,275  5,352  6,073 
Solvency Ratio
Interest coverage1 13.84 12.27 9.65 7.72 9.04
Benchmarks
Interest Coverage, Competitors2
Abbott Laboratories 7.09 4.48 3.47 4.28 20.53
AbbVie Inc. 5.72 4.86 7.72 8.53 10.24
Allergan PLC -5.54 -6.53 -8.48 -1.19 -2.71
Amgen Inc. 8.09 7.86 8.36 8.27 8.29
Biogen Inc. 38.60 30.41 21.45 19.97 50.79
Bristol-Myers Squibb Co. 8.58 33.61 27.18 36.42 12.29
Eli Lilly & Co. 14.15 14.95 10.77 19.22 18.31
Gilead Sciences Inc. 6.19 8.24 13.10 18.74 32.48
Johnson & Johnson 55.49 18.91 19.92 28.28 35.78
Pfizer Inc. 12.23 10.03 10.69 8.04 8.48
Regeneron Pharmaceuticals Inc. 81.43 91.55 83.75 185.82 87.03
Vertex Pharmaceuticals Inc. 24.84 9.28 0.77 0.17 -5.62
Zoetis Inc. 9.08 9.20 9.71 8.40 5.40
Interest Coverage, Sector
Pharmaceuticals & Biotechnology 10.23 9.08 8.94 10.71 12.44
Interest Coverage, Industry
Health Care 9.24 8.75 8.60 9.55 11.20

Based on: 10-K (filing date: 2020-02-26), 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).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 12,357 ÷ 893 = 13.84

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Merck & Co. Inc.’s interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Fixed Charge Coverage

Merck & Co. Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Merck & Co., Inc. 9,843  6,220  2,394  3,920  4,442 
Add: Net income attributable to noncontrolling interest (66) (27) 24  21  17 
Add: Income tax expense 1,687  2,508  4,103  718  942 
Add: Interest expense 893  772  754  693  672 
Earnings before interest and tax (EBIT) 12,357  9,473  7,275  5,352  6,073 
Add: Operating lease cost 339  322  327  292  303 
Earnings before fixed charges and tax 12,696  9,795  7,602  5,644  6,376 
 
Interest expense 893  772  754  693  672 
Operating lease cost 339  322  327  292  303 
Fixed charges 1,232  1,094  1,081  985  975 
Solvency Ratio
Fixed charge coverage1 10.31 8.95 7.03 5.73 6.54
Benchmarks
Fixed Charge Coverage, Competitors2
Abbott Laboratories 5.14 4.48 3.47 4.28 20.53
AbbVie Inc. 5.42 4.44 6.86 7.54 8.68
Allergan PLC -4.48 -5.73 -6.20 -0.90 -2.11
Amgen Inc. 7.12 7.13 7.56 7.57 7.50
Biogen Inc. 24.21 23.25 17.23 16.01 29.98
Bristol-Myers Squibb Co. 7.10 20.07 17.24 19.96 7.41
Eli Lilly & Co. 10.18 8.66 5.89 9.31 8.21
Gilead Sciences Inc. 5.46 7.58 12.26 17.36 29.28
Johnson & Johnson 28.72 14.46 14.53 19.75 23.12
Pfizer Inc. 9.88 8.34 8.76 6.64 7.21
Vertex Pharmaceuticals Inc. 20.79 7.69 0.82 0.33 -4.45
Zoetis Inc. 7.85 7.73 8.55 7.43 4.63
Fixed Charge Coverage, Sector
Pharmaceuticals & Biotechnology 8.36 7.69 7.36 8.70 9.81
Fixed Charge Coverage, Industry
Health Care 7.29 7.07 6.85 7.61 8.60

Based on: 10-K (filing date: 2020-02-26), 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).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 12,696 ÷ 1,232 = 10.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Merck & Co. Inc.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.