Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Merck & Co. Inc., long-term (investment) activity ratios
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).
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.’s net fixed asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
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.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Merck & Co. Inc.’s total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Merck & Co. Inc.’s equity turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Net Fixed Asset Turnover
Merck & Co. Inc., net fixed asset turnover calculation, comparison to benchmarks
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Sales | 46,840 | 42,294 | 40,122 | 39,807 | 39,498 | |
Property, plant and equipment, at cost, net of accumulated depreciation | 15,053 | 13,291 | 12,439 | 12,026 | 12,507 | |
Long-term Activity Ratio | ||||||
Net fixed asset turnover1 | 3.11 | 3.18 | 3.23 | 3.31 | 3.16 | |
Benchmarks | ||||||
Net Fixed Asset Turnover, Competitors2 | ||||||
Abbott Laboratories | 3.97 | 4.04 | 3.60 | 3.66 | 3.56 | |
AbbVie Inc. | 11.23 | 11.36 | 10.07 | 9.85 | 8.91 | |
Amgen Inc. | 4.51 | 4.54 | 4.37 | 4.41 | 4.27 | |
Bristol-Myers Squibb Co. | 4.18 | 4.49 | 4.15 | 3.90 | 3.75 | |
Eli Lilly & Co. | 2.83 | 2.75 | 2.59 | 2.57 | 2.48 | |
Gilead Sciences Inc. | 4.91 | 5.41 | 7.79 | 10.45 | 14.13 | |
Illumina Inc. | 3.99 | 3.10 | 2.96 | 3.36 | 6.48 | |
Johnson & Johnson | 4.65 | 4.79 | 4.50 | 4.52 | 4.41 | |
Pfizer Inc. | 3.71 | 4.01 | 3.79 | 3.97 | 3.55 | |
Regeneron Pharmaceuticals Inc. | 2.72 | 2.61 | 2.49 | 2.33 | 2.57 | |
Vertex Pharmaceuticals Inc. | 5.59 | 3.75 | 3.15 | 2.44 | 1.48 | |
Zoetis Inc. | 3.23 | 3.51 | 3.70 | 3.54 | 3.65 | |
Net Fixed Asset Turnover, Sector | ||||||
Pharmaceuticals & Biotechnology | 4.11 | 4.22 | 4.08 | 4.20 | 4.10 | |
Net Fixed Asset Turnover, Industry | ||||||
Health Care | 6.02 | 6.11 | 5.89 | 6.07 | 5.70 |
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
Net fixed asset turnover = Sales ÷ Property, plant and equipment, at cost, net of accumulated depreciation
= 46,840 ÷ 15,053 = 3.11
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.’s net fixed asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
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
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Sales | 46,840 | 42,294 | 40,122 | 39,807 | 39,498 | |
Property, plant and equipment, at cost, net of accumulated depreciation | 15,053 | 13,291 | 12,439 | 12,026 | 12,507 | |
Operating lease right-of-use asset (included in Other assets) | 1,073 | — | — | — | — | |
Property, plant and equipment, at cost, net of accumulated depreciation (including operating lease, right-of-use asset) | 16,126 | 13,291 | 12,439 | 12,026 | 12,507 | |
Long-term Activity Ratio | ||||||
Net fixed asset turnover (including operating lease, right-of-use asset)1 | 2.90 | 3.18 | 3.23 | 3.31 | 3.16 | |
Benchmarks | ||||||
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
Abbott Laboratories | 3.56 | 4.04 | 3.60 | 3.66 | 3.56 | |
AbbVie Inc. | 10.06 | 11.36 | 10.07 | 9.85 | 8.91 | |
Amgen Inc. | 4.11 | 4.54 | 4.37 | 4.41 | 4.27 | |
Bristol-Myers Squibb Co. | 3.76 | 4.49 | 4.15 | 3.90 | 3.75 | |
Eli Lilly & Co. | 2.66 | 2.75 | 2.59 | 2.57 | 2.48 | |
Gilead Sciences Inc. | 4.28 | 5.41 | 7.79 | 10.45 | 14.13 | |
Illumina Inc. | 2.45 | 3.10 | 2.96 | 3.36 | 6.48 | |
Johnson & Johnson | 4.41 | 4.79 | 4.50 | 4.52 | 4.41 | |
Pfizer Inc. | 3.39 | 4.01 | 3.79 | 3.97 | 3.55 | |
Regeneron Pharmaceuticals Inc. | 2.70 | 2.61 | 2.49 | 2.33 | 2.57 | |
Vertex Pharmaceuticals Inc. | 5.00 | 3.75 | 3.15 | 2.44 | 1.48 | |
Zoetis Inc. | 2.94 | 3.51 | 3.70 | 3.54 | 3.65 | |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
Pharmaceuticals & Biotechnology | 3.77 | 4.22 | 4.08 | 4.20 | 4.10 | |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
Health Care | 5.38 | 6.11 | 5.89 | 6.07 | 5.70 |
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
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)
= 46,840 ÷ 16,126 = 2.90
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.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Total Asset Turnover
Merck & Co. Inc., total asset turnover calculation, comparison to benchmarks
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Sales | 46,840 | 42,294 | 40,122 | 39,807 | 39,498 | |
Total assets | 84,397 | 82,637 | 87,872 | 95,377 | 101,779 | |
Long-term Activity Ratio | ||||||
Total asset turnover1 | 0.55 | 0.51 | 0.46 | 0.42 | 0.39 | |
Benchmarks | ||||||
Total Asset Turnover, Competitors2 | ||||||
Abbott Laboratories | 0.47 | 0.46 | 0.36 | 0.40 | 0.49 | |
AbbVie Inc. | 0.37 | 0.55 | 0.40 | 0.39 | 0.43 | |
Amgen Inc. | 0.37 | 0.34 | 0.27 | 0.28 | 0.29 | |
Bristol-Myers Squibb Co. | 0.20 | 0.64 | 0.62 | 0.58 | 0.52 | |
Eli Lilly & Co. | 0.57 | 0.56 | 0.51 | 0.55 | 0.56 | |
Gilead Sciences Inc. | 0.36 | 0.34 | 0.37 | 0.53 | 0.62 | |
Illumina Inc. | 0.48 | 0.48 | 0.52 | 0.56 | 0.60 | |
Johnson & Johnson | 0.52 | 0.53 | 0.49 | 0.51 | 0.53 | |
Pfizer Inc. | 0.31 | 0.34 | 0.31 | 0.31 | 0.29 | |
Regeneron Pharmaceuticals Inc. | 0.53 | 0.57 | 0.67 | 0.70 | 0.73 | |
Vertex Pharmaceuticals Inc. | 0.50 | 0.49 | 0.70 | 0.59 | 0.41 | |
Zoetis Inc. | 0.54 | 0.54 | 0.62 | 0.64 | 0.60 | |
Total Asset Turnover, Sector | ||||||
Pharmaceuticals & Biotechnology | 0.40 | 0.46 | 0.41 | 0.42 | 0.43 | |
Total Asset Turnover, Industry | ||||||
Health Care | 0.51 | 0.57 | 0.51 | 0.53 | 0.51 |
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
Total asset turnover = Sales ÷ Total assets
= 46,840 ÷ 84,397 = 0.55
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.’s total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Equity Turnover
Merck & Co. Inc., equity turnover calculation, comparison to benchmarks
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Sales | 46,840 | 42,294 | 40,122 | 39,807 | 39,498 | |
Total Merck & Co., Inc. stockholders’ equity | 25,907 | 26,701 | 34,336 | 40,088 | 44,676 | |
Long-term Activity Ratio | ||||||
Equity turnover1 | 1.81 | 1.58 | 1.17 | 0.99 | 0.88 | |
Benchmarks | ||||||
Equity Turnover, Competitors2 | ||||||
Abbott Laboratories | 1.03 | 1.00 | 0.89 | 1.02 | 0.96 | |
AbbVie Inc. | — | — | 5.54 | 5.53 | 5.79 | |
Amgen Inc. | 2.30 | 1.80 | 0.86 | 0.73 | 0.75 | |
Bristol-Myers Squibb Co. | 0.51 | 1.61 | 1.77 | 1.20 | 1.16 | |
Eli Lilly & Co. | 8.56 | 2.50 | 1.97 | 1.52 | 1.37 | |
Gilead Sciences Inc. | 0.98 | 1.01 | 1.26 | 1.59 | 1.73 | |
Illumina Inc. | 0.77 | 0.89 | 1.00 | 1.09 | 1.20 | |
Johnson & Johnson | 1.38 | 1.37 | 1.27 | 1.02 | 0.98 | |
Pfizer Inc. | 0.82 | 0.85 | 0.74 | 0.89 | 0.75 | |
Regeneron Pharmaceuticals Inc. | 0.71 | 0.77 | 0.96 | 1.09 | 1.12 | |
Vertex Pharmaceuticals Inc. | 0.68 | 0.69 | 1.23 | 1.47 | 1.10 | |
Zoetis Inc. | 2.31 | 2.67 | 3.00 | 3.29 | 4.46 | |
Equity Turnover, Sector | ||||||
Pharmaceuticals & Biotechnology | 1.28 | 1.41 | 1.17 | 1.12 | 1.05 | |
Equity Turnover, Industry | ||||||
Health Care | 1.42 | 1.52 | 1.36 | 1.34 | 1.22 |
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
Equity turnover = Sales ÷ Total Merck & Co., Inc. stockholders’ equity
= 46,840 ÷ 25,907 = 1.81
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.’s equity turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |