Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Analysis of Long-term (Investment) Activity Ratios 

Microsoft Excel

Long-term Activity Ratios (Summary)

Merck & Co. Inc., long-term (investment) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net fixed asset turnover 2.61 2.77 2.53 2.67 3.11
Net fixed asset turnover (including operating lease, right-of-use asset) 2.45 2.60 2.33 2.43 2.90
Total asset turnover 0.56 0.54 0.46 0.52 0.55
Equity turnover 1.60 1.29 1.28 1.90 1.81

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Merck & Co. Inc. net fixed asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). Merck & Co. Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Merck & Co. Inc. total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Merck & Co. Inc. equity turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Net Fixed Asset Turnover

Merck & Co. Inc., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Sales 60,115 59,283 48,704 47,994 46,840
Property, plant and equipment, at cost, net of accumulated depreciation 23,051 21,422 19,279 17,986 15,053
Long-term Activity Ratio
Net fixed asset turnover1 2.61 2.77 2.53 2.67 3.11
Benchmarks
Net Fixed Asset Turnover, Competitors2
AbbVie Inc. 10.89 11.76 11.00 8.73 11.23
Amgen Inc. 4.53 4.57 4.69 4.96 4.51
Bristol-Myers Squibb Co. 6.77 7.38 7.67 7.22 4.18
Eli Lilly & Co. 2.64 2.81 3.15 2.83 2.83
Gilead Sciences Inc. 5.07 4.93 5.27 4.90 4.91
Johnson & Johnson 4.28 4.79 4.95 4.40 4.65
Pfizer Inc. 3.09 6.17 5.46 3.01 3.71
Regeneron Pharmaceuticals Inc. 3.16 3.23 4.62 2.64 2.72
Thermo Fisher Scientific Inc. 4.54 4.84 4.71 5.45 5.38
Vertex Pharmaceuticals Inc. 8.51 8.06 6.92 6.47 5.59
Net Fixed Asset Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.06 4.86 4.86 4.21 4.22
Net Fixed Asset Turnover, Industry
Health Care 10.19 10.62 10.38 9.62 9.72

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net fixed asset turnover = Sales ÷ Property, plant and equipment, at cost, net of accumulated depreciation
= 60,115 ÷ 23,051 = 2.61

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Merck & Co. Inc. net fixed asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Merck & Co. Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Sales 60,115 59,283 48,704 47,994 46,840
 
Property, plant and equipment, at cost, net of accumulated depreciation 23,051 21,422 19,279 17,986 15,053
Operating lease right-of-use asset (included in Other assets) 1,437 1,346 1,586 1,725 1,073
Property, plant and equipment, at cost, net of accumulated depreciation (including operating lease, right-of-use asset) 24,488 22,768 20,865 19,711 16,126
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 2.45 2.60 2.33 2.43 2.90
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
AbbVie Inc. 9.47 10.24 9.57 7.46 10.06
Amgen Inc. 4.08 4.13 4.23 4.58 4.11
Bristol-Myers Squibb Co. 5.60 6.18 6.66 6.30 3.76
Eli Lilly & Co. 2.43 2.63 2.93 2.63 2.66
Gilead Sciences Inc. 4.57 4.51 4.77 4.34 4.28
Johnson & Johnson 4.07 4.54 4.72 4.18 4.41
Pfizer Inc. 2.68 5.20 4.59 2.74 3.39
Regeneron Pharmaceuticals Inc. 3.11 3.17 4.52 2.58 2.66
Thermo Fisher Scientific Inc. 3.89 4.13 3.98 4.82 4.69
Vertex Pharmaceuticals Inc. 6.79 6.13 5.32 4.83 5.00
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Pharmaceuticals, Biotechnology & Life Sciences 3.68 4.39 4.37 3.84 3.89
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Health Care 8.32 8.55 8.22 7.54 7.63

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales ÷ Property, plant and equipment, at cost, net of accumulated depreciation (including operating lease, right-of-use asset)
= 60,115 ÷ 24,488 = 2.45

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). Merck & Co. Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Total Asset Turnover

Merck & Co. Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Sales 60,115 59,283 48,704 47,994 46,840
Total assets 106,675 109,160 105,694 91,588 84,397
Long-term Activity Ratio
Total asset turnover1 0.56 0.54 0.46 0.52 0.55
Benchmarks
Total Asset Turnover, Competitors2
AbbVie Inc. 0.40 0.42 0.38 0.30 0.37
Amgen Inc. 0.28 0.38 0.40 0.39 0.37
Bristol-Myers Squibb Co. 0.47 0.48 0.42 0.36 0.20
Eli Lilly & Co. 0.53 0.58 0.58 0.53 0.57
Gilead Sciences Inc. 0.43 0.43 0.40 0.36 0.36
Johnson & Johnson 0.51 0.51 0.52 0.47 0.52
Pfizer Inc. 0.26 0.51 0.45 0.27 0.31
Regeneron Pharmaceuticals Inc. 0.40 0.42 0.63 0.50 0.53
Thermo Fisher Scientific Inc. 0.43 0.46 0.41 0.47 0.44
Vertex Pharmaceuticals Inc. 0.43 0.49 0.56 0.53 0.50
Total Asset Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.41 0.48 0.45 0.39 0.40
Total Asset Turnover, Industry
Health Care 0.80 0.81 0.76 0.70 0.71

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Total asset turnover = Sales ÷ Total assets
= 60,115 ÷ 106,675 = 0.56

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Merck & Co. Inc. total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Equity Turnover

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Sales 60,115 59,283 48,704 47,994 46,840
Total Merck & Co., Inc. stockholders’ equity 37,581 45,991 38,184 25,317 25,907
Long-term Activity Ratio
Equity turnover1 1.60 1.29 1.28 1.90 1.81
Benchmarks
Equity Turnover, Competitors2
AbbVie Inc. 5.24 3.36 3.65 3.50
Amgen Inc. 4.32 6.77 3.63 2.58 2.30
Bristol-Myers Squibb Co. 1.53 1.49 1.29 1.12 0.51
Eli Lilly & Co. 3.17 2.68 3.15 4.35 8.56
Gilead Sciences Inc. 1.18 1.27 1.28 1.34 0.98
Johnson & Johnson 1.24 1.24 1.27 1.31 1.38
Pfizer Inc. 0.66 1.05 1.05 0.66 0.82
Regeneron Pharmaceuticals Inc. 0.51 0.54 0.86 0.77 0.71
Thermo Fisher Scientific Inc. 0.92 1.02 0.96 0.93 0.86
Vertex Pharmaceuticals Inc. 0.56 0.64 0.75 0.71 0.68
Equity Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.25 1.32 1.35 1.31 1.26
Equity Turnover, Industry
Health Care 2.22 2.17 2.10 2.06 2.06

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Equity turnover = Sales ÷ Total Merck & Co., Inc. stockholders’ equity
= 60,115 ÷ 37,581 = 1.60

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Merck & Co. Inc. equity turnover ratio improved from 2021 to 2022 and from 2022 to 2023.