Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Merck & Co. Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency analysis for the period between March 2022 and March 2026 reveals a cyclical trend in capital structure management. The data indicates an initial phase of deleveraging through early 2023, followed by a series of fluctuations and a definitive increase in debt-related ratios toward the end of the observed period.
- Debt to Equity Ratio
- A downward trend was observed from March 2022 (0.78) to March 2023, where the ratio reached a low of 0.66. This was immediately followed by a sharp increase to 0.95 in June 2023. After a period of volatility ranging between 0.72 and 0.93 through 2024 and early 2025, the ratio climbed steadily to reach its peak of 1.07 by March 2026, signaling a significant shift toward higher debt reliance relative to shareholder equity.
- Debt to Capital Ratio
- The ratio decreased from 0.44 in March 2022 to a low of 0.40 by March 2023. A subsequent spike to 0.49 occurred in June 2023, after which the ratio remained largely stable, fluctuating between 0.42 and 0.48. A final upward movement is noted in the closing quarters, ending at 0.52 in March 2026.
- Debt to Assets Ratio
- Debt levels relative to total assets remained relatively stable in the first year, dipping to 0.28 in late 2022. A peak of 0.35 was reached in June 2023, followed by a stabilization period around 0.32 for most of 2024. The ratio increased again in late 2025 and early 2026, concluding at 0.38.
- Financial Leverage
- Financial leverage exhibited the most pronounced volatility. It declined from 2.61 in March 2022 to 2.30 by March 2023, then rose sharply to a peak of 2.84 by December 2023. Following a correction back down to 2.38 in March 2025, the leverage trended upward again, reaching 2.80 by March 2026.
The synchronization of these ratios indicates a broader strategic shift in the company's solvency profile. While the period from March 2022 to March 2023 was characterized by a reduction in leverage, the subsequent years show an increasing trend in total debt obligations relative to equity, assets, and total capital, culminating in the highest leverage levels of the period by March 2026.
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Debt Ratios
Debt to Equity
Merck & Co. Inc., debt to equity calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Loans payable and current portion of long-term debt | 2,444) | 2,589) | 1,405) | 1,434) | 1,360) | 2,649) | 3,149) | 3,071) | 3,077) | 1,372) | 887) | 2,839) | 2,672) | 1,946) | 1,936) | 2,979) | 1,208) | ||||||
| Long-term debt, excluding current portion | 46,673) | 46,750) | 39,969) | 33,968) | 33,484) | 34,462) | 34,982) | 34,717) | 31,142) | 33,683) | 33,972) | 34,072) | 28,074) | 28,745) | 28,482) | 28,684) | 30,586) | ||||||
| Total debt | 49,117) | 49,339) | 41,374) | 35,402) | 34,844) | 37,111) | 38,131) | 37,788) | 34,219) | 35,055) | 34,859) | 36,911) | 30,746) | 30,691) | 30,418) | 31,663) | 31,794) | ||||||
| Total Merck & Co., Inc. stockholders’ equity | 45,878) | 52,606) | 51,850) | 48,993) | 48,335) | 46,313) | 44,502) | 43,582) | 40,364) | 37,581) | 41,246) | 38,693) | 46,834) | 45,991) | 44,458) | 43,243) | 40,883) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | 1.07 | 0.94 | 0.80 | 0.72 | 0.72 | 0.80 | 0.86 | 0.87 | 0.85 | 0.93 | 0.85 | 0.95 | 0.66 | 0.67 | 0.68 | 0.73 | 0.78 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | — | — | — | — | 49.22 | 20.19 | 11.78 | 10.42 | 9.24 | 5.73 | 5.02 | 4.74 | 4.68 | 3.67 | 4.35 | 4.98 | 4.51 | ||||||
| Amgen Inc. | 6.24 | 6.31 | 5.67 | 7.57 | 9.24 | 10.23 | 8.02 | 10.57 | 12.75 | 10.37 | 7.90 | 9.08 | 11.52 | 10.64 | 10.60 | 15.10 | 40.23 | ||||||
| Bristol-Myers Squibb Co. | 2.22 | 2.44 | 2.64 | 2.82 | 2.86 | 3.04 | 2.90 | 3.08 | 3.38 | 1.35 | 1.30 | 1.18 | 1.19 | 1.27 | 1.20 | 1.29 | 1.42 | ||||||
| Danaher Corp. | 0.35 | 0.35 | 0.33 | 0.33 | 0.32 | 0.32 | 0.34 | 0.34 | 0.34 | 0.34 | 0.42 | 0.38 | 0.39 | 0.39 | 0.41 | 0.43 | 0.47 | ||||||
| Eli Lilly & Co. | 1.39 | 1.60 | 1.79 | 2.18 | 2.44 | 2.37 | 2.19 | 2.13 | 2.05 | 2.34 | 1.80 | 1.70 | 1.69 | 1.52 | 1.58 | 1.97 | 1.77 | ||||||
| Gilead Sciences Inc. | 0.94 | 1.10 | 1.16 | 1.27 | 1.30 | 1.38 | 1.26 | 1.28 | 1.44 | 1.09 | 1.12 | 1.19 | 1.20 | 1.19 | 1.20 | 1.30 | 1.32 | ||||||
| Johnson & Johnson | 0.68 | 0.59 | 0.58 | 0.65 | 0.67 | 0.51 | 0.51 | 0.58 | 0.48 | 0.43 | 0.42 | 0.61 | 0.75 | 0.52 | 0.43 | 0.43 | 0.44 | ||||||
| Pfizer Inc. | 0.72 | 0.75 | 0.66 | 0.70 | 0.69 | 0.73 | 0.73 | 0.79 | 0.75 | 0.81 | 0.66 | 0.66 | 0.36 | 0.37 | 0.40 | 0.46 | 0.44 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | ||||||
| Thermo Fisher Scientific Inc. | 0.83 | 0.74 | 0.70 | 0.70 | 0.69 | 0.63 | 0.72 | 0.75 | 0.78 | 0.75 | 0.78 | 0.78 | 0.83 | 0.78 | 0.67 | 0.72 | 0.81 | ||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to equity = Total debt ÷ Total Merck & Co., Inc. stockholders’ equity
= 49,117 ÷ 45,878 = 1.07
2 Click competitor name to see calculations.
The solvency profile exhibits three distinct phases characterized by initial deleveraging, a period of intermediate volatility, and a final phase of significant leverage expansion.
- Deleveraging and Stability (March 2022 – March 2023)
- A consistent reduction in the debt-to-equity ratio is observed during this period, descending from 0.78 to 0.66. This improvement was driven by a combination of modest debt reductions and a steady increase in stockholders' equity, which grew from 40,883 million to 46,834 million.
- Volatility and Re-leveraging (June 2023 – December 2023)
- A sharp inflection point occurred in June 2023, where the ratio spiked to 0.95. This shift resulted from a simultaneous increase in total debt to 36,911 million and a contraction in stockholders' equity to 38,693 million. The ratio remained elevated through the end of 2023, fluctuating between 0.85 and 0.93.
- Recovery and Ratio Stabilization (March 2024 – June 2025)
- A period of solvency improvement followed, with the debt-to-equity ratio gradually declining back to 0.72 by June 2025. This trend was supported by a sustained growth in stockholders' equity, which reached 48,993 million, effectively offsetting the impact of relatively stable debt levels.
- Aggressive Leverage Expansion (September 2025 – March 2026)
- The final phase is marked by a substantial increase in financial leverage. Total debt escalated rapidly from 41,374 million in June 2025 to a peak of 49,339 million in December 2025. This surge, coupled with a sharp decline in stockholders' equity to 45,878 million by March 2026, caused the debt-to-equity ratio to climb to 1.07, marking the first instance in the analyzed timeframe where total debt exceeded total equity.
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Debt to Capital
Merck & Co. Inc., debt to capital calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Loans payable and current portion of long-term debt | 2,444) | 2,589) | 1,405) | 1,434) | 1,360) | 2,649) | 3,149) | 3,071) | 3,077) | 1,372) | 887) | 2,839) | 2,672) | 1,946) | 1,936) | 2,979) | 1,208) | ||||||
| Long-term debt, excluding current portion | 46,673) | 46,750) | 39,969) | 33,968) | 33,484) | 34,462) | 34,982) | 34,717) | 31,142) | 33,683) | 33,972) | 34,072) | 28,074) | 28,745) | 28,482) | 28,684) | 30,586) | ||||||
| Total debt | 49,117) | 49,339) | 41,374) | 35,402) | 34,844) | 37,111) | 38,131) | 37,788) | 34,219) | 35,055) | 34,859) | 36,911) | 30,746) | 30,691) | 30,418) | 31,663) | 31,794) | ||||||
| Total Merck & Co., Inc. stockholders’ equity | 45,878) | 52,606) | 51,850) | 48,993) | 48,335) | 46,313) | 44,502) | 43,582) | 40,364) | 37,581) | 41,246) | 38,693) | 46,834) | 45,991) | 44,458) | 43,243) | 40,883) | ||||||
| Total capital | 94,995) | 101,945) | 93,224) | 84,395) | 83,179) | 83,424) | 82,633) | 81,370) | 74,583) | 72,636) | 76,105) | 75,604) | 77,580) | 76,682) | 74,876) | 74,906) | 72,677) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 0.52 | 0.48 | 0.44 | 0.42 | 0.42 | 0.44 | 0.46 | 0.46 | 0.46 | 0.48 | 0.46 | 0.49 | 0.40 | 0.40 | 0.41 | 0.42 | 0.44 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | 1.10 | 1.05 | 1.04 | 1.00 | 0.98 | 0.95 | 0.92 | 0.91 | 0.90 | 0.85 | 0.83 | 0.83 | 0.82 | 0.79 | 0.81 | 0.83 | 0.82 | ||||||
| Amgen Inc. | 0.86 | 0.86 | 0.85 | 0.88 | 0.90 | 0.91 | 0.89 | 0.91 | 0.93 | 0.91 | 0.89 | 0.90 | 0.92 | 0.91 | 0.91 | 0.94 | 0.98 | ||||||
| Bristol-Myers Squibb Co. | 0.69 | 0.71 | 0.73 | 0.74 | 0.74 | 0.75 | 0.74 | 0.75 | 0.77 | 0.57 | 0.56 | 0.54 | 0.54 | 0.56 | 0.54 | 0.56 | 0.59 | ||||||
| Danaher Corp. | 0.26 | 0.26 | 0.25 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.30 | 0.28 | 0.28 | 0.28 | 0.29 | 0.30 | 0.32 | ||||||
| Eli Lilly & Co. | 0.58 | 0.62 | 0.64 | 0.69 | 0.71 | 0.70 | 0.69 | 0.68 | 0.67 | 0.70 | 0.64 | 0.63 | 0.63 | 0.60 | 0.61 | 0.66 | 0.64 | ||||||
| Gilead Sciences Inc. | 0.49 | 0.52 | 0.54 | 0.56 | 0.57 | 0.58 | 0.56 | 0.56 | 0.59 | 0.52 | 0.53 | 0.54 | 0.55 | 0.54 | 0.54 | 0.56 | 0.57 | ||||||
| Johnson & Johnson | 0.40 | 0.37 | 0.37 | 0.39 | 0.40 | 0.34 | 0.34 | 0.37 | 0.32 | 0.30 | 0.30 | 0.38 | 0.43 | 0.34 | 0.30 | 0.30 | 0.31 | ||||||
| Pfizer Inc. | 0.42 | 0.43 | 0.40 | 0.41 | 0.41 | 0.42 | 0.42 | 0.44 | 0.43 | 0.45 | 0.40 | 0.40 | 0.26 | 0.27 | 0.28 | 0.32 | 0.31 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.12 | ||||||
| Thermo Fisher Scientific Inc. | 0.45 | 0.42 | 0.41 | 0.41 | 0.41 | 0.39 | 0.42 | 0.43 | 0.44 | 0.43 | 0.44 | 0.44 | 0.45 | 0.44 | 0.40 | 0.42 | 0.45 | ||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 49,117 ÷ 94,995 = 0.52
2 Click competitor name to see calculations.
The solvency profile exhibits a period of relative stability followed by a marked increase in leverage toward the conclusion of the analyzed period. While both total debt and total capital experienced growth, the acceleration of debt accumulation in late 2025 exerted upward pressure on the overall capital structure.
- Total Debt Evolution
- Debt levels remained relatively consistent between March 2022 and March 2023, fluctuating within the $30 billion to $32 billion range. A notable increase occurred in June 2023, where debt rose to $36.9 billion. Following this, debt remained largely stable, oscillating between $34 billion and $38 billion through December 2024. A significant surge is observed in the latter half of 2025, with total debt climbing sharply from $35.4 billion in June 2025 to a peak of $49.3 billion in December 2025, ending at $49.1 billion in March 2026.
- Total Capital Trends
- Total capital demonstrated a gradual expansion from $72.7 billion in March 2022 to $83.4 billion by December 2024. A period of rapid growth followed in 2025, with capital peaking at $101.9 billion in December 2025. A subsequent reduction is observed by March 2026, with total capital decreasing to $95.0 billion.
- Debt to Capital Ratio Interpretation
- The debt to capital ratio initially trended downward, moving from 0.44 in March 2022 to a low of 0.40 in early 2023. After a spike to 0.49 in June 2023, the ratio remained relatively contained, fluctuating between 0.42 and 0.48 through June 2025. However, a definitive upward trend emerged in the final three quarters of the period, with the ratio rising from 0.44 in September 2025 to 0.52 by March 2026. This indicates that debt grew at a faster rate than total capital during the final phase of the analysis, resulting in a higher reliance on borrowed funds.
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Debt to Assets
Merck & Co. Inc., debt to assets calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Loans payable and current portion of long-term debt | 2,444) | 2,589) | 1,405) | 1,434) | 1,360) | 2,649) | 3,149) | 3,071) | 3,077) | 1,372) | 887) | 2,839) | 2,672) | 1,946) | 1,936) | 2,979) | 1,208) | ||||||
| Long-term debt, excluding current portion | 46,673) | 46,750) | 39,969) | 33,968) | 33,484) | 34,462) | 34,982) | 34,717) | 31,142) | 33,683) | 33,972) | 34,072) | 28,074) | 28,745) | 28,482) | 28,684) | 30,586) | ||||||
| Total debt | 49,117) | 49,339) | 41,374) | 35,402) | 34,844) | 37,111) | 38,131) | 37,788) | 34,219) | 35,055) | 34,859) | 36,911) | 30,746) | 30,691) | 30,418) | 31,663) | 31,794) | ||||||
| Total assets | 128,685) | 136,866) | 129,546) | 117,523) | 115,122) | 117,106) | 117,532) | 112,630) | 105,849) | 106,675) | 106,727) | 104,469) | 107,796) | 109,160) | 107,081) | 107,095) | 106,668) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.38 | 0.36 | 0.32 | 0.30 | 0.30 | 0.32 | 0.32 | 0.34 | 0.32 | 0.33 | 0.33 | 0.35 | 0.29 | 0.28 | 0.28 | 0.30 | 0.30 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | 0.53 | 0.50 | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | 0.50 | 0.50 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | 0.49 | 0.51 | 0.51 | ||||||
| Amgen Inc. | 0.62 | 0.60 | 0.61 | 0.64 | 0.64 | 0.65 | 0.66 | 0.69 | 0.69 | 0.67 | 0.67 | 0.68 | 0.69 | 0.60 | 0.61 | 0.62 | 0.62 | ||||||
| Bristol-Myers Squibb Co. | 0.51 | 0.50 | 0.51 | 0.52 | 0.54 | 0.54 | 0.53 | 0.55 | 0.56 | 0.42 | 0.41 | 0.40 | 0.40 | 0.41 | 0.40 | 0.42 | 0.44 | ||||||
| Danaher Corp. | 0.22 | 0.22 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.22 | 0.22 | 0.25 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.26 | ||||||
| Eli Lilly & Co. | 0.37 | 0.38 | 0.37 | 0.40 | 0.43 | 0.43 | 0.41 | 0.40 | 0.41 | 0.39 | 0.35 | 0.34 | 0.36 | 0.33 | 0.33 | 0.36 | 0.35 | ||||||
| Gilead Sciences Inc. | 0.39 | 0.42 | 0.43 | 0.45 | 0.44 | 0.45 | 0.43 | 0.44 | 0.45 | 0.40 | 0.40 | 0.40 | 0.41 | 0.40 | 0.40 | 0.42 | 0.42 | ||||||
| Johnson & Johnson | 0.27 | 0.24 | 0.24 | 0.26 | 0.27 | 0.20 | 0.20 | 0.23 | 0.20 | 0.18 | 0.18 | 0.24 | 0.27 | 0.21 | 0.18 | 0.18 | 0.19 | ||||||
| Pfizer Inc. | 0.31 | 0.31 | 0.30 | 0.30 | 0.30 | 0.30 | 0.31 | 0.32 | 0.31 | 0.32 | 0.30 | 0.30 | 0.18 | 0.18 | 0.19 | 0.21 | 0.20 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | ||||||
| Thermo Fisher Scientific Inc. | 0.38 | 0.36 | 0.35 | 0.35 | 0.35 | 0.32 | 0.35 | 0.36 | 0.37 | 0.35 | 0.36 | 0.36 | 0.37 | 0.35 | 0.32 | 0.33 | 0.36 | ||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 49,117 ÷ 128,685 = 0.38
2 Click competitor name to see calculations.
The solvency profile reflects a transition from a relatively stable leverage position to a period of increasing debt reliance relative to the asset base over the analyzed timeframe.
- Debt Accumulation Trends
- Total debt exhibited stability between March 2022 and March 2023, fluctuating around the 30 billion USD mark. A moderate increase occurred in June 2023, where debt rose to 36.9 billion USD. The most pronounced escalation began in late 2025, with total debt increasing from 35.4 billion USD in June 2025 to a peak of 49.3 billion USD by December 2025, remaining elevated at 49.1 billion USD in March 2026.
- Asset Base Dynamics
- Total assets remained largely consistent through 2022 and 2023, hovering between 104 billion USD and 109 billion USD. A growth trend emerged in mid-2024, as assets rose to 112.6 billion USD in June and reached a peak of 136.8 billion USD by December 2025. A subsequent contraction to 128.6 billion USD is observed in the final quarter ending March 2026.
- Debt to Assets Ratio Analysis
- The debt to assets ratio maintained a tight range of 0.28 to 0.30 during 2022. A temporary spike to 0.35 was recorded in June 2023, followed by a period of relative stability between 0.30 and 0.34 through 2024 and early 2025. A definitive upward trajectory is observed starting in September 2025, with the ratio climbing to 0.36 in December 2025 and reaching a period maximum of 0.38 by March 2026. This trend indicates that a larger proportion of the company's assets are being financed through debt, signaling a shift in the capital structure toward higher leverage.
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Financial Leverage
Merck & Co. Inc., financial leverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | 128,685) | 136,866) | 129,546) | 117,523) | 115,122) | 117,106) | 117,532) | 112,630) | 105,849) | 106,675) | 106,727) | 104,469) | 107,796) | 109,160) | 107,081) | 107,095) | 106,668) | ||||||
| Total Merck & Co., Inc. stockholders’ equity | 45,878) | 52,606) | 51,850) | 48,993) | 48,335) | 46,313) | 44,502) | 43,582) | 40,364) | 37,581) | 41,246) | 38,693) | 46,834) | 45,991) | 44,458) | 43,243) | 40,883) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | 2.80 | 2.60 | 2.50 | 2.40 | 2.38 | 2.53 | 2.64 | 2.58 | 2.62 | 2.84 | 2.59 | 2.70 | 2.30 | 2.37 | 2.41 | 2.48 | 2.61 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | — | — | — | — | 95.89 | 40.65 | 23.78 | 20.94 | 18.59 | 13.00 | 11.26 | 10.52 | 10.14 | 8.04 | 8.84 | 9.77 | 8.80 | ||||||
| Amgen Inc. | 10.07 | 10.46 | 9.37 | 11.83 | 14.40 | 15.63 | 12.07 | 15.34 | 18.51 | 15.59 | 11.83 | 13.31 | 16.59 | 17.79 | 17.44 | 24.51 | 64.62 | ||||||
| Bristol-Myers Squibb Co. | 4.31 | 4.87 | 5.22 | 5.43 | 5.32 | 5.67 | 5.46 | 5.56 | 6.01 | 3.23 | 3.15 | 2.92 | 2.96 | 3.12 | 3.01 | 3.08 | 3.26 | ||||||
| Danaher Corp. | 1.58 | 1.59 | 1.56 | 1.56 | 1.56 | 1.57 | 1.57 | 1.57 | 1.56 | 1.58 | 1.67 | 1.64 | 1.65 | 1.68 | 1.72 | 1.76 | 1.80 | ||||||
| Eli Lilly & Co. | 3.74 | 4.24 | 4.83 | 5.52 | 5.67 | 5.55 | 5.31 | 5.30 | 4.99 | 5.94 | 5.16 | 4.95 | 4.75 | 4.65 | 4.71 | 5.51 | 5.03 | ||||||
| Gilead Sciences Inc. | 2.39 | 2.60 | 2.72 | 2.83 | 2.95 | 3.05 | 2.95 | 2.93 | 3.21 | 2.72 | 2.80 | 2.95 | 2.95 | 2.97 | 2.97 | 3.11 | 3.17 | ||||||
| Johnson & Johnson | 2.47 | 2.44 | 2.43 | 2.46 | 2.48 | 2.52 | 2.54 | 2.53 | 2.46 | 2.44 | 2.33 | 2.55 | 2.77 | 2.44 | 2.35 | 2.33 | 2.39 | ||||||
| Pfizer Inc. | 2.30 | 2.41 | 2.25 | 2.32 | 2.30 | 2.42 | 2.38 | 2.47 | 2.40 | 2.54 | 2.22 | 2.22 | 1.94 | 2.06 | 2.10 | 2.24 | 2.23 | ||||||
| Regeneron Pharmaceuticals Inc. | 1.30 | 1.30 | 1.30 | 1.28 | 1.28 | 1.29 | 1.28 | 1.28 | 1.27 | 1.27 | 1.29 | 1.28 | 1.28 | 1.29 | 1.29 | 1.32 | 1.32 | ||||||
| Thermo Fisher Scientific Inc. | 2.18 | 2.07 | 2.02 | 2.00 | 2.01 | 1.96 | 2.05 | 2.08 | 2.13 | 2.11 | 2.14 | 2.15 | 2.24 | 2.21 | 2.08 | 2.14 | 2.26 | ||||||
| Vertex Pharmaceuticals Inc. | 1.37 | 1.37 | 1.44 | 1.40 | 1.39 | 1.37 | 1.42 | 1.36 | 1.29 | 1.29 | 1.32 | 1.32 | 1.31 | 1.30 | 1.28 | 1.31 | 1.31 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Financial leverage = Total assets ÷ Total Merck & Co., Inc. stockholders’ equity
= 128,685 ÷ 45,878 = 2.80
2 Click competitor name to see calculations.
The financial structure of the entity exhibits a general expansion in the asset base coupled with fluctuations in equity, resulting in a variable financial leverage profile over the analyzed period. While total assets grew from 106,668 million USD in March 2022 to a peak of 136,866 million USD in December 2025, stockholders' equity experienced more volatility, particularly during 2023 and the first quarter of 2026.
- Total Asset Growth
- A steady upward trajectory in total assets is observed for the majority of the period. Assets remained relatively stable around 106-109 billion USD through late 2022 and early 2023, followed by a significant acceleration starting in June 2024, where values climbed from 112,630 million USD to a high of 136,866 million USD by December 2025.
- Equity Volatility
- Stockholders' equity demonstrated inconsistent growth. After a period of increase reaching 46,834 million USD in March 2023, a notable contraction occurred, with equity dipping to 37,581 million USD by December 2023. Recovery followed, peaking at 52,606 million USD in December 2025, before a sharp decline to 45,878 million USD was recorded in March 2026.
- Financial Leverage Trends
- The financial leverage ratio fluctuated between a low of 2.30 in March 2023 and a high of 2.84 in December 2023. An initial deleveraging trend was evident from March 2022 to March 2023, as the ratio decreased from 2.61 to 2.30. This was followed by a rapid increase in leverage through the remainder of 2023, coinciding with the decline in stockholders' equity. After a period of relative stabilization between 2.38 and 2.64 from March 2024 to December 2024, the ratio rose again to 2.80 by March 2026, driven primarily by the contraction in equity during the final quarter.
Overall, the analysis indicates a strategic expansion of the balance sheet, although the reliance on debt or other liabilities relative to equity increased toward the end of the observation period. The most significant shifts in leverage were not driven by asset growth alone, but by substantial quarterly movements in stockholders' equity.
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