Analysis of Reportable Segments
Merck & Co. Inc. operates in 2 segments: Pharmaceutical and Animal Health.
Segment Profit Margin
Merck & Co. Inc., profit margin by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Pharmaceutical | 77.58% | 72.56% | 70.86% | 72.45% | 69.09% |
| Animal Health | 32.98% | 30.88% | 35.37% | 35.02% | 35.08% |
Based on: 10-K (reporting date: 2024-12-31), 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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Pharmaceutical | Pharmaceutical segment profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Animal Health | Animal Health segment profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Segment Profit Margin: Pharmaceutical
Merck & Co. Inc.; Pharmaceutical; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profits | 44,533) | 38,880) | 36,852) | 30,977) | 29,722) |
| Sales | 57,400) | 53,583) | 52,005) | 42,754) | 43,021) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 77.58% | 72.56% | 70.86% | 72.45% | 69.09% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment profit margin = 100 × Segment profits ÷ Sales
= 100 × 44,533 ÷ 57,400 = 77.58%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Pharmaceutical | Pharmaceutical segment profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Segment Profit Margin: Animal Health
Merck & Co. Inc.; Animal Health; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profits | 1,938) | 1,737) | 1,963) | 1,950) | 1,650) |
| Sales | 5,877) | 5,625) | 5,550) | 5,568) | 4,703) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 32.98% | 30.88% | 35.37% | 35.02% | 35.08% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment profit margin = 100 × Segment profits ÷ Sales
= 100 × 1,938 ÷ 5,877 = 32.98%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Animal Health | Animal Health segment profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Sales
Merck & Co. Inc., sales by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Pharmaceutical | 57,400) | 53,583) | 52,005) | 42,754) | 43,021) |
| Animal Health | 5,877) | 5,625) | 5,550) | 5,568) | 4,703) |
| Other segments | —) | —) | —) | —) | 23) |
| Total segment | 63,277) | 59,208) | 57,555) | 48,322) | 47,747) |
Based on: 10-K (reporting date: 2024-12-31), 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).
Segment profits
Merck & Co. Inc., segment profits by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Pharmaceutical | 44,533) | 38,880) | 36,852) | 30,977) | 29,722) |
| Animal Health | 1,938) | 1,737) | 1,963) | 1,950) | 1,650) |
| Other segments | —) | —) | —) | —) | 1) |
| Total segment | 46,471) | 40,617) | 38,815) | 32,927) | 31,373) |
Based on: 10-K (reporting date: 2024-12-31), 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).