Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Merck & Co. Inc. (NYSE:MRK)

Analysis of Long-term (Investment) Activity Ratios

Beginner level

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net fixed asset turnover 3.11 3.18 3.23 3.31 3.16
Net fixed asset turnover (including operating lease, right-of-use asset) 2.90 3.18 3.23 3.31 3.16
Total asset turnover 0.55 0.51 0.46 0.42 0.39
Equity turnover 1.81 1.58 1.17 0.99 0.88

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

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)
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

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)
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

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)
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

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)
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.